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In the financial context, platinum refers to a highly valuable precious metal used as a standard of exchange or investment. Similar to gold and silver, it’s often purchased in the form of bars, coins, or as part of a financial investment strategy. It is utilized as an indicator in the commodities market and its value is susceptible to fluctuations due to changes in supply and demand.


The phonetics of the word “Platinum” is: /ˈplætɪnəm/

Key Takeaways

Three Main Takeaways About Platinum

  1. Platinum is a dense, malleable, ductile, highly unreactive, precious, silver-white transition metal. Its name comes from the Spanish term platino, which means “little silver”.
  2. Platinum is used in catalytic converters, laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers, dentistry equipment, and jewelry. It is also used in chemotherapy drugs for treating certain types of cancer.
  3. Platinum is considered a rare element on Earth. Its rarity, coupled with its uses in various industrial applications, contribute to its high value. It is more rare than gold and silver, and more costly per unit weight.


Platinum is important in the world of business and finance primarily due to its rarity and robustness, making it a highly valuable and sought-after precious metal. In finance terminology, ‘platinum’ often denotes a premium or top-tier status, such as in credit cards where a platinum card generally offers greater benefits and perks compared to basic or gold cards. Furthermore, since platinum is traded on the global commodity markets, its price trends can act as a critical indicator of economic health. Investors may opt for platinum as part of a diversified investment portfolio for potential hedging against inflation or currency fluctuations. Hence, ‘Platinum’ holds a significant place in business and financial sectors.


In the world of finance and business, platinum refers to a precious metal often used as an investable asset, similar to gold or silver. This high-value material serves as an alternative investment product to diversify an investor’s portfolio due to its rarity and unique properties. Investors can invest in platinum through different methods, such as buying physical platinum (bars or coins), purchasing shares of platinum mining companies, or investing in exchange-traded funds (ETFs) or futures contracts that track the price of platinum.Investors are drawn towards platinum because it is often counter-cyclical to the economy. During economic downturns, investors tend to flock to precious metals as safe-haven assets, adding an investment stability aspect to portfolios. Aside from its investment appeal, platinum is extensively used in various industries, including automotive for catalytic converters, electronics, and jewelry, hence providing industrial demand. Despite its potential for high returns, investing in platinum comes with its set of risks and volatility, which investors must thoroughly consider before investing.


1. Platinum Credit Cards: Many banks and financial institutions offer a category of credit cards known as ‘platinum’ credit cards. These cards often come with a higher credit limit, added benefits such as travel insurance, and reward point programs. An example is the American Express Platinum Card, which offers extensive travel benefits and rewards to cardholders.2. Platinum in the Car Industry: In the automobile industry, platinum is used in the production of catalytic converters. These devices, installed in vehicles, use platinum to help reduce harmful gas emissions. Companies like Ford, Honda, and Toyota investing in platinum for this purpose would be an example of platinum use in business.3. Platinum in the Jewelry Industry: Platinum is highly valued in the jewelry industry because of its resistance to wear and tarnish. It’s often used in high-end jewelry pieces, such as rings or necklaces. For instance, Tiffany & Co, a high-end jewelry firm, offers a range of platinum jewelry products, from engagement rings to watches.

Frequently Asked Questions(FAQ)

What does Platinum refer to in finance and business?

Platinum, in finance and business terms, usually refers to the precious metal used as an investment commodity. Like gold, silver, and other precious metals, platinum can be bought, sold, and traded.

How is the value of Platinum determined?

Platinum’s value is determined by market demand and supply factors. This includes its rarity, the costs associated with mining and refining, and its ongoing associations with luxury and wealth.

How can I invest in Platinum?

You can invest in platinum in several ways. These include buying physical platinum, buying shares in platinum mining companies, trading futures and options in the commodities market, or buying a platinum-backed exchange traded fund (ETF).

What factors can influence Platinum prices?

Several factors can influence platinum prices including geopolitical and economic events, changes in production and demand, investor behaviors, currency fluctuations, and changes in interest rates.

What risks are involved in Platinum investment?

The risks involved in platinum investment include price volatility due to market fluctuations, the risk of theft (in the case of physical platinum), the risk of company failure (in the case of mining stocks), and potential changes in government or legal regulations.

Is Platinum a good investment?

Platinum can be a good investment, particularly as a hedge against inflation or as a diversification strategy. However, like all investments, it should align with your overall investment strategy and risk tolerance.

Can Platinum be used as a currency?

Typically, platinum is not used as a currency. However, it is frequently used as an investment and value-hold, similar to other precious metals.

Is Platinum more rare than Gold?

Yes, platinum is considerably more rare than gold. For every 10 ounces of gold that is mined, only approximately 1 ounce of platinum is produced.

Why is Platinum important in business?

Apart from being a valuable commodity for investment, platinum is also used in a variety of industries such as automotive, electronics, jewelry, and even in certain medical applications. Hence its demand and price can influence various sectors of business.

Related Finance Terms

  • Platinum Credit Card
  • Platinum Investment
  • Platinum Market
  • Platinum Futures
  • Platinum Pricing

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