Platinum Group Metals (PGM)
Platinum Group Metals (PGM) are rare metals that were only discovered in the year 1735, many thousands of years after gold and silver.
Platinum is only the 72nd most common chemical element in the earth’s crust, out of a total of 92 naturally occurring elements and is 15 to 20 times scarcer than gold, very rarely found in its pure form in nature and geographically 80% of viable platinum reserves are found in the Northern part of South Africa. Its main source is as a by-product from nickel and copper mining, and like silver, rhodium and palladium, platinum has industrial uses and the growing automobile industry is always seeking this robust metal. Similarly to the Gold/Silver ratio that many of our investors are already aware of, the Platinum/Gold ratio indicates considerable undervaluation of Platinum.
Rhodium & Palladium, like silver, have widespread industrial uses and prices are driven by supply and demand deficits. Global demand for rhodium is poised to exceed output by the highest amount in three decades as carmakers and chemical companies snap up supplies. However, in Australia GST is payable on both of these precious metals. Rhodium is a very rare metal, silvery corrosive resistant. Due to its rarity and industrial use, the price is driven by supply-demand factors and can be a very exciting investment opportunity for the educated investor.
While most smart investors would already have an allocation of gold and silver within their portfolios, it’s the truly savvy pundits who have begun to diversify further into other products within the precious metals asset class. After some specific research coupled with our well-established understanding of the precious metals markets, we strongly believe there are some exciting opportunities at hand and we invite you to discover the beauty of PGM’s – Platinum Group Metals.