The term “platinum” is derived from the Spanish word “platina” (“little silver”), but does not do the popular precious metal justice at all. It doesn’t have to hide from its big brother any more than it does from gold. This is because platinum has a number of unique properties that make it particularly valuable. Especially coins made of platinum are popular collectibles and investment objects. In our coin store you can buy platinum coins as well as have your coins valued.
Buy platinum coins: Platinum as a sensible investment
These days, it’s not always easy to know which investments are worth investing in. Interest rates for fixed-term deposits are a thing of the past, stocks are risky, real estate is not affordable for everyone. As a coin collector, you kill two birds with one stone: you can follow your passion and end up with an increase in profits with valuable coins. When you buy platinum coins, the likelihood of appreciation is high. However, for this you need to know which particular coins you should pay attention to. This is the only way to turn your coin collection into a worthwhile investment.
Due to their fame alone, gold coins and coins made of silver are particularly popular with many buyers. But you should definitely consider buying platinum coins as well. Because platinum is a material that is as beautiful as it is valuable. Platinum is said to have been traded in ancient Egypt as early as 3000 BC. But it was not until the 19th century that scientists recognized the extraordinary quality of the gray-white shimmering precious metal.
When you buy platinum coins, you are not only choosing special coins, but also a worthwhile investment. This is because platinum deposits are extremely rare: There is around 30 times as much gold in the world, and platinum is correspondingly valuable. However, even platinum coins are not self-runners. This is because the demand for gold on the global market is still higher and mining platinum is very costly: Just one ounce of platinum can be extracted from ten tons of rock – equivalent to 31 grams. In addition, the price of platinum also depends on the price of the dollar. The stronger the U.S. currency, the lower the price of platinum.
Nevertheless, at times the platinum coin price has overtaken all other precious metals on the coin exchange. The reason for this is also its versatility. Platinum is used for example
- in the automotive industry
- for laboratory equipment
- as a dental implant
- as contact material
- for jewelry
used. In addition, unrest in the mining of platinum at South African mines is causing inventories to fall. This increases the demand and, consequently, the price of platinum. Get in at a low price and opt for rare coins (“limited editions”). In this way, an increase in the value of your platinum coin is highly probable in the near future.
Compared to gold or silver coins, the market for platinum coins is rather small. But demand and supply are steadily increasing. Many manufacturers have recognized the trend and now regularly produce new platinum coins. However, due to their great popularity, these are usually quickly out of stock.
An example here is the Krugerrand platinum. For the 50th anniversary of the South African Mint (2017), a platinum version of the popular coin was also launched on the market for the first time: the Krugerrand Platinum (1 Oz). The small mintage of this coin also justifies its high value. In addition, you can also choose the 50 ruble platinum, the Vienna Philharmonic or other coins made of platinum. These are usually issued in the minting quality“stamp gloss“, in rare cases also as a polished plate (proof).
Gold, silver or platinum coins: How do the precious metals differ?
If you compare the material value of precious metals, platinum is clearly in the lead. The shiny white-gray metal stands for high durability and first-class quality. Unlike silver, it has a higher density, is heavier in weight and many times harder. Gold, it is true, is often officially in first place simply because of its notoriety. However, the annual production volume of around 2500 tons of gold is offset by only around 200 tons of platinum. And this despite the fact that platinum mining is much more complicated and platinum is largely processed industrially.
Platinum is thus the rarest, most durable and heaviest precious metal and can be processed excellently thanks to its extreme pliability. Nevertheless, far fewer coins are minted from platinum than from gold or silver. That is why platinum coins are considered a popular and extremely lucrative investment.
Platinum coins: bullion coins vs. collector coins
Platinum coins are very interesting for money investors as a supplement or diversification in their precious metal portfolio. Passionate numismatists, on the other hand, often opt for the rare coins to complete their collection.
Bullion co ins or investment coins are usually produced in large quantities for a specific investment in a particular precious metal. Their weight is precisely stated and is standard in ounces (Oz). The English abbreviation stands for one ounce, or 31.1 grams. Due to the also fixed fineness of 999.5 thousandths you get with a platinum coin weighing one ounce (1 oz) practically pure platinum. Only in exceptional cases are bullion coins offered in alternative weight classes.
Collector coins are not initially produced with the purpose of collecting. It is true that new mintages of limited editions can be expected to cause quite a stir among collectors. These include, for example, the “50 Ruble Beaver” from 2008 or the Krugerrand Platinum (1 oz) from 2017. Ultimately, however, demand determines the value of the coin. Collector coins are therefore all those coins that are in particularly high demand globally and are difficult to obtain on the open market.
Note: If you would like to buy platinum coins as an investment, please note the applicable VAT, even if you buy platinum abroad. This is because the type of coin and the respective customs regulations determine whether and how much the platinum coins are taxed. With the so-called duty-free warehouse you avoid the tax expenses, but you do not physically hold your precious metal in your hands. Instead, it is managed and stored by the company from which you make the purchase. On the other hand, the significantly more favorable differential taxation is often applied to platinum coins. In this case, you will only have to pay the VAT if you resellyour coin collection.
Krugerrand platinum coins: special rarities, not only for coin collectors
There are some particularly well-known and popular coins around the world. Besides the Britannia, the American Eagle or the Maple Leaf, this also includes the Krugerrand or Krugerrand. In fact, some experts consistently declare this world’s first bullion coin from 1967 to be the most popular. In its original form, this is a gold coin from the then South African mint Rand Refinery. The coin features on its obverse a portrait of Paul Kruger, who held the country’s presidency from 1882 to 1902. Despite the passage of apartheid laws, Kruger was best known for his numerous conservation projects. One reason for this is that the reverse side features the image of a springbok, one of South Africa’s most famous antelopes.
To mark the 50th anniversary of the first issue, a special platinum edition was also minted for the first time. The fineness of the Krugerrand Platinum 2017, 1 oz is given as 999.9. All of the total 2017 coins are available as polished plate and have a face value of ten rand. But this is not the price for which you can buy the rare coin. Due to its small edition of only 2017 pieces, it has already experienced a significant increase in value.
Platinum coins: Sell coin collection
You want to buy platinum coins but sell your coin collection? Then you should not just look at a conventional list of current prices to buy and sell. After all, not only do the values of precious metals also fluctuate almost daily in uncertain economic times. It is also possible that among your numerous coins there is a particularly valuable one without your knowledge. Therefore, you should have your coins appraised. In our coin store we are always at your disposal with our personal expertise and many years of experience. We will make you a guaranteed independent and fair offer for your coin collection.
Platinum: factors influencing the price of platinum
We have already mentioned it: Just like silver, platinum is primarily an industrial metal. The greatest demand for platinum is currently still for automotive catalytic converters, which serve to reduce pollution. In second place, platinum is used in the jewelry industry. The remaining share is accounted for by petroleum and chemical refineries and the computer industry. Due to its main use in the automotive industry, platinum prices are largely determined by the sales and production figures of the automotive industry. This in turn is dependent on South Africa and Russia, the two main producers of platinum.
Platinum coins: Check authenticity and have price estimated
If you want to sell your coin collection, you should find out in advance where you can have your coins appraised. Also find out which test methods are used in the process. In addition to demand, three factors basically determine the value of coins: Authenticity, purity and weight. For coins can be minted in an almost pure precious metal content, as well as an alloy of various materials. Various options are available for checking authenticityand for determining the proportion of platinum or another precious metal:
- Visual inspection by an experienced professional is the first step in checking the authenticity of a coin. Experts are usually known by most coins reference coins. This way, they can spot possible counterfeits right away based on the edge or embossing.
- Equally important is a tradable (“bankable”) condition: deformations such as dents or dings, obvious scratch marks or significant deformations usually reduce the value of the coin. Only in the case of particularly soft coins or coins with copper content are isolated scratches or reddish discolorations permitted.
- If you would like to test your coins for their platinum authenticity, another method is dip weighing according to Archimedes’ principle . In this density measurement, the volume displacement of water is measured and the weight of the coin is read from this. For this purpose, the coin expert immerses your platinum coin completely and without touching the edge in a vessel filled with water. The vessel stands on a highly precise scale. Thus, with a simple rule of three, the density of the material can be determined and compared with a nominal value.
- Finally, in case of doubt, magnetic scales or ultrasonic measuring devices can be used. This makes it possible to detect counterfeit coins, especially with tungsten. The heavy metal has a similar density to gold, but unlike the precious metal it attracts magnets.
Buy or sell platinum coins: exclusively at RareCoin
Whether you want to buy platinum coins or sell your coin collection: We are there for you with all concerns around coins. Contact us either by phone, video call or email first.
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