Prices and distribution of the Platinum metal are tightly regulated by the producers. It is sold more like a brand than a metal. It is also not traded on any commodity exchange.Due to these factors, it’s not a product that’s price-sensitive like gold.
Another reason people do not go for Platinum because whenever a buyer goes to a retailer for gold jewellery, they get the break-up of the gold price, which fluctuates every day, and making charges. In case of platinum the prices, the jewellery is always sold as a complete set. Jewellers change price only if there’s any significant fluctuation of four-five per cent. However, the consumer gets a buyback certificate from the manufacturer and the jeweller. “They can get 80 per cent of the purchase value any time they want to return the jewellery. The cut percentage in Platinum is more than gold in case of an exchange.
Due to the lack of break-up of the price, some feel buying platinum is not as transparent as gold. “Platinum prices are dependent on the demand from the auto sector. If India’s economy picks up, and car sales zoom, the price can go back to being 30–40 per cent higher than gold. Platinum has a lot of potential for investors but there are no investment products, such as coins or bars, available in the market. There’s also no resale market.
Platinum is best-suited for those looking for precious metals, other than gold, for jewellery. We will update latest trend for the metal in the comments below this post.
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