Platinum 101

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A Brief History

As an excellent jewelry material, platinum is regarded by many as a "new" metal. In actuality, platinum is one of the rarest metals with only about 133 tons mined annually compared to about 1,782 tons of gold. Platinum is also one of the purest precious metals in the world.

While Gold has played an important part of history dating back to 700 BC, platinum’s true worth was not realized until the mid-eighteenth century when Europeans began to hold it in high esteem. Legendary jewelers like Cartier, Faberge and Tiffany owe much of their fame and importance to platinum.

Platinum reached its peak of popularity in the early 1900’s, when it was the preferred metal for all fine jewelry in America. When World War II began, the U.S. government declared platinum a strategic metal and its use in nonmilitary applications, including jewelry was prohibited. In order to meet consumer demand for those who preferred platinum’s white luster, white gold was substituted in its absence.

Why Platinum

Platinum has unique chemical and physical properties that make it essential in a wide range of industrial and environmental applications. And yet, it is also considered one of the finest of all jewelry metal.

Over 20% of all consumer goods either contain platinum or are produced using platinum.  As a consequence, the continued expansion of advanced and developing economies has caused demand for the metal to grow at a faster pace than it is being mined.

Platinum is a truly "Precious Metal"

Platinum is the rarest of the precious metals. Roughly 90% of all platinum supplies come from South Africa and Russia. Virtually all of the platinum mined in South Africa is pre-sold to industrial users. Approximately eight tons of raw ore must be mined to produce just one pure ounce of platinum. In terms of a financial strategy, one can purchase platinum in the form of American Eagle Platinum Coins.