Investors in precious metals, and in particular, platinum, will be excited to hear that the U.S. Mint has announced that they are resuming the production of platinum coins following a four year hiatus, as reported by the Chicago Tribune.
The U.S. Mint ceased minting U.S. platinum eagles following 2008 due to a drop in demand, as investors were more interested in traditional safe haven investments, such as gold, following the collapse of the financial markets in 2007 & 2008. However, recent renewed interest has helped to support the production of these coins, which were first introduced in 1997.
While platinum is more rare than gold, industrial demand is the primary factor that affects its value in the commodities market, as its primary use is in the production of catalytic converters. We’ll seen a moderate improvement in the economy over the past couple of years and increased demand for new vehicles, which has helped to support higher platinum prices. Furthermore, more individuals appear to be viewing platinum as an investment than in years past.
Because industrial demand heavily influences the price of platinum, it has historically been more volatile than other popular precious metal investments, such as gold and silver. Furthermore, its price tends to more closely follow the strength, or lack thereof, of the overall economy. In addition to industrial demand, platinum tends to perform relatively well during periods of loose monetary policies by the Federal Reserve.
Atlanta Gold & Coin Buyers is pleased to be able to offer 1/2 ounce and 1/4 ounce platinum eagles to our customers. Because the U.S. Mint will only be minting one ounce American platinum eagles in 2014, it’s possible that we could begin to see a shortage of fractional platinum eagles in the marketplace, which may result in higher premiums in the future. Contact us today while prices remain reasonable, as we only have a limited supply of these coins on hand.