According to the WPIC, platinum is an item that should have a high value due to its purity, brightness, and resistance.
The world is drowning in a sea of economic uncertainty; prices keep elevating to celestial heights, and some consider investing in lesser-known precious items; platinum appears to be one of these chosen ones. According to Coininvest, diversifying portfolios and betting on this kind of investment as a refuge value is a good option.
According to Daniel Marburger, Director of Coininvest, platinum is a metal that receives a high value due to its purity, brightness, and high resistance. In this sense, he describes that it has value due to its density and stability, which is a good option in areas like health and electronics.
According to Marburger, platinum is anti-allergenic, does not rust, and survives extreme environmental conditions. On the other hand, as Marburger explains, platinum surpasses by 40% the cost of white gold.
According to data brought by the World Platinum Investment Council, the momentum behind the hydrogen economy and the technologies linked to green hydrogen made from renewable electricity is growing.
This momentum is evolving so fast that it could satisfy up to 25% of the world’s energy requirements and become a reachable market of at least 10 billion dollars by 2050.
The current EU and China green hydrogen generation capacity targets would need more than 300 oz platinum by 2030. As the hydrogen economy evolves, it would bring advantages to the acceptance of electric vehicles.
The growth of the FCEV market could generate high demand for platinum, giving a consolidated foundation for platinum as a valuable asset. The use of platinum in FCEV would surpass an additional 1.5 Moz per year in 2030.
On the other hand, during the market turmoil registered in 2020, investors sought safe-haven assets, and platinum surpassed gold, experiencing an increase of 80% versus gold’s 26% rise in January 2021.
After this event, platinum’s price performance did not happen because of the rising investment demand. This performance got sustained by its growing industrial demand and strong demand for platinum jewelry which, combined with limited supply growth, maintained positive investor trust despite a slight demand in the automotive sector.
Platinum and Digital Assets: Stablecoins
Stablecoins have direct ties to various currencies like dollars or precious metals. This combination of precious metals with technology can create new crypto items like Platinum Coin or Silver Coin.
PlatinumCoin counts on a security based on ERC-20 stablecoin that finds its base on the Ethereum blockchain and receives power from a smart contract. There is currently no method to set a limit on payments due to the strength of blockchain technology.
Because these assets got attached to these metals, they go through less market volatility than digital assets like Bitcoin often do. Those who deal with stablecoins do not typically suffer losses when trading because stablecoins never fall below the underlying supportive price.
Crypto backed by precious metals is gaining more attention and appreciation, which means it, is essential to understand its nature.
By: Jenson Nuñez
