Bars and coins

Platinum bullion is an umbrella term that refers to two types of investment product – bars and coins – that share common characteristics, with guaranteed purity of 99.95 per cent being the key criterion. Both provide a straightforward and widely available way of adding physical platinum to an investment portfolio. Investment in platinum bullion also gives investors reassurance in terms of provenance and quality; platinum bullion bars can be made by refineries that meet the stringent ‘Good Delivery’ requirements set out by the London Platinum and Palladium Market (LPPM), the major international trading centre for platinum bullion, and platinum bars and coins are frequently issued by Sovereign mints, such as the US Mint or The Royal Mint in the UK.

Platinum bullion products also offer investors improved liquidity over non-bullion products. They can be bought and sold easily, with value derived from their purity or ‘fineness’ and the prevailing spot market price for platinum, adjusted to include manufacturing costs and supplier margin. In certain jurisdictions, like the US, platinum bullion products can be held as part of a retirement savings plan. There can also be tax benefits from holding certain platinum bullion investments, although this varies depending upon jurisdiction and the tax rules applicable to individual investors or trusts.

This year, North American demand for platinum bullion bar and coin is set to post a new high of 292 koz, reflecting strong investor appetite for hard assets amid rising inflation concerns. This comes as sales of the 2022, 1 oz platinum bullion American Eagle coin have reached the second-highest level ever recorded at 80,000 oz year-to-date.