In addition to being one of the world’s most popular metals, Platinum offers many characteristics and use cases that make it an appealing investment.
- Rarity: Platinum is one of the rarest elements on earth, and the amount of platinum that can be mined is limited. This means that the demand for platinum is likely to exceed the supply, leading to an increase in its value.
- Industrial demand: Platinum is used in a variety of industrial applications, such as catalytic converters for automobiles and fuel cells for clean energy. As the demand for these products increases, the demand for platinum is also likely to increase.
- Inflation hedge: Platinum is considered a good hedge against inflation because it is a physical asset that retains its value over time. As the value of paper currencies decreases due to inflation, the value of platinum is likely to increase.
- Diversification: Investing in platinum can provide diversification to a portfolio, as its value is not directly correlated to traditional assets like stocks and bonds. This can help to reduce volatility and increase the overall risk-adjusted returns of the portfolio.
- Potential for price appreciation: Platinum prices have historically been volatile, but over the long term, they have shown potential for appreciation. This makes platinum an attractive investment for those looking to capitalize on potential price increases.
xMetals offers an easy and efficient way to own and trade Platinum. Every xPlatinum (xPT) token is backed by 1 troy ounce of allocated, investment grade, Platinum that is held in secure, world-class, storage facilities. Users are even able to redeem their tokens for physical Platinum bars, in addition to being able to freely transfer their tokens 24/7/365. xMetals aims to democratize the precious metals industry through tokenization and increased transparency.
