Learning More About The Value When Buying Platinum Coins
Platinum is one of the world's rarest and most sought-after metals, and there have been times when it is valued higher per ounce than gold. Platinum coins are only a small portion of the platinum trade sector. Part of what makes this metal so valuable is its nonreactive quality. It is extraordinarily resistant to tarnish, wear and corrosion. The history of platinum is exciting and reveals how it got to be classified as a precious metal. Understanding this history can help you to see what makes platinum coin sets so special.
Who Uses Platinum?
Collectors all over the world prize their platinum coin collections, but this is only a small percentage of where platinum derives its value from. Its non-reactive properties make it perfect for industrial applications such as in turbine engines, fertilizers, medical technologies and electronics. The biggest industry for platinum today is the automotive industry, which uses platinum in catalytic converters to reduce automobile emissions.
These properties also make platinum highly desirable in jewellery. Unlike silver, platinum pieces can sit in a jewellery drawer indefinitely with no fear of it tarnishing.
Where Does Platinum Come From?
An interesting thing about platinum is that its scarcity has more to do with where it is sourced from than from its occurrence in the Earth's crust. There is actually slightly more platinum in the ground than there is gold, but there are very few places people know of where it can be mined. Gold has been mined for thousands of years, and as such, the amount of gold above the surface is far greater compared to the amount of platinum.
There are three mines in South Africa and one mine in Russia that produce most of the world's platinum supply. The production in South Africa faces hurdles of political instability and labour strikes that often interrupt mining. As these South African mines produce 70% of the platinum in the world, platinum above the surface is now so rare that all of the metal ever mined could fit into an average garage. This is exacerbated by lowering ore grades and rising costs of mining.
What Is the Value of Platinum, Then and Now?
For years at a time, platinum has had a higher price per ounce than gold. This fluctuated until platinum hit its most recent peak value in 2008, before the financial crisis. At that time, platinum fell sharply. Now it is still valued lower than it historically has been, which has made platinum a hot item for investors. Platinum investors often look for platinum coins as "value-buys," hoping to bolster their capital for when the price inevitably starts to rise again.
What Makes Platinum Coins Collectible?
For the same reasons that people like to buy platinum jewellery, platinum coins make an excellent part of any collection, as they'll retain their original shine throughout the collector's whole lifetime. Whenever the
Royal Canadian Mint releases a new set, it is designed with unique artwork, and only a limited number of coin sets are produced.
The famous Canadian Maple Leaf 99.95% platinum bullion coin was first released in 1988 and remains one of the most popular items for collectors to this day. Often these coins fit well into the collections of history buffs as well, as they contain artwork and engraved messages that recall the history of Canada.
How Valuable Are Platinum Coin Sets?
Royal Canadian Mint platinum coins can be on the expensive side, but this makes them even more collectible because very few people will have the privilege of owning even one. The 2016 Canada $300 Maple Leaf Forever coins are now going for $3,000 per coin, a 1,000% increase from their release date. This coin is dual-plated to convey the colours of two different species of maple that grow in Canada. The coin is mostly platinum with some layers of gold plating.
Get the Best Value
If you are well into the hobby of coin collecting, you are probably prepared to spend a pretty penny on platinum coins. Prices can fluctuate between coin dealers, however, you want to make sure you get the best deal. Colonial Acres Coins offers fair prices on all of our coins from the Royal Canadian Mint. See if anything in our online store catches your eye.
