Many factors contribute to the determination of the platinum price. Platinum is an extremely rare metal. There is a rather low supply level of the
metal which indicates that it will be expensive, however its price fluctuates
regularly. The economic and political
environments in the few regions that produce this metal play a big part in the
supply and pricing structure of the metal.
Platinum is more rare than silver and gold. The minimal supply of the metal all over the
world, in comparison to silver and gold, ensures that the demand for the
product remains high, with low supply.
This supply and demand structure increases the price dramatically.
Economic pressure can affect the demand for platinum which makes for the
volatility of the price of the metal.
This situation is the opposite to gold which does not appear to lose its
pricing strength even in times of economic recession. In contrast, during strong economic periods,
the platinum price has been known to rise above that of gold.
The majority of the world’s platinum production is carried out in Russia
and South Africa. The political and
economic climate in these countries can impact the supply of platinum and, by
default, the price of the metal.
More than 50% of the world’s platinum production is utilized in the
automobile industry. Due to the advent
of ‘green cars’ and the production of catalytic converters that allow for
cleaner vehicle emissions, the demand for the metal has increased. Once again, the supply and demand situation
that this promotes has an effect on the price of platinum. The other area where platinum is mostly used
is in the jewelry trade.
Selling Platinum
Platinum jewelry has gained popularity in recent years, particularly the
wedding ring niche. If you have platinum
jewelry that you wish to sell, you should be aware of a few things.
Know Your Jewelry
The value of platinum is quite high, so it will be in your best interest
to confirm that your jewelry is indeed platinum and not white gold or
silver. Find out what the weight of the
platinum is. Many buyers will estimate
the weight and this means that your final price may be lower than what it
should be.
If you have jewelry with precious stones inset, be sure of what the
stones are. If you are unsure about the
stones set into your jewelry, unscrupulous buyers may take advantage of
you.
The design, especially if it is a popular one, may hold more value than
a plain design. If it is a vintage piece
and you hold authentic paperwork for it, you should produce the paperwork when
you intend selling the jewelry as this will definitely help you procure a
higher price.
The best option for selling platinum is to approach buyers like Gold Solutions in Cape Coral who have
experience in trading the metal. Speak
to several gold buying companies so
that you can get an idea as to the pricing structure of the items you are
selling. Ensure that you check the
credentials of the buyer you eventually choose to deal with.
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