The price consumers pay for American Eagle platinum bullion coins includes various factors: their weight in platinum, based on the prevailing spot market price, plus a premium to reflect minting; distribution and marketing costs; and investor demand.
The soaring demand for precious metal coins in March and April this year, together with constrained distribution, has lifted this premium to four times its typical level for gold and platinum, and nearly three times for silver.
Why platinum bullion?
Platinum Eagles are often purchased by investors seeking an easy – and accessible - way of adding physical platinum to their investment portfolios. In the current environment, investors are turning to hard assets like platinum bullion to mitigate against the significantly increased global risk associated with the unfolding economic impact of the pandemic. The recent fall in the price of platinum brought about by financial markets’ reaction to the crisis has also proved to be an entry point for some investors.
Platinum bullion coins are attractive to investors seeking portfolio diversification as well as a long-term store of value. There can be tax benefits too, as sales of legal tender platinum bullion coins are not subject to capital gains tax in the UK, for UK residents. In the US, platinum bullion can be held as an asset as part of a retirement portfolio.