Platinum price guide
WHAT MAKES PLATINUM A PRECIOUS METAL?
This is a classification of certain metals that are considered rare and have a higher economic value compared to other metals. There are five major precious metals openly traded on various exchanges, with platinum having the second smallest futures market. Other precious metals are sometimes referred to as currency metals, but platinum has never been used as a global currency. However, some investors have viewed the precious metal as a store of value in recent history. In addition to being a precious metal, platinum belongs to a unique subcategory known as platinum group metals (PGM). A small amount of PGM metals are used in jewelry, but they are best known for their industrial uses in the automotive sector.
Most of the platinum produced is used in the automotive sector in autocatalysts used to reduce emissions from petrol and diesel vehicles.
WHAT IS PLATINUM SPOT?
Platinum spot prices refer to the price of precious metals for immediate delivery. Gold coin transactions are almost always valued based on the spot rate. The spot market is traded almost 24 hours a day as there is almost always somewhere in the world actively taking orders. Most of the commercial activities take place in New York, London, Sydney, Hong Kong, Tokyo and Zurich. Whenever gold dealers are active in one of these cities, we will indicate this on our website with the notice "Spot market is open". For the highest and lowest values, we show the lowest bid and highest order for the day.
PLATINUM AWARDS - FUTURE MARKET
Platinum is one of several commodity futures contracts in which contracts are made by agreeing to buy or sell the precious metals at a specific price on a specific future date. Platinum futures are used both as a way for producers and market makers to hedge their products against market fluctuations, and as a way for speculators to profit from the same market movements.
A precious metals futures contract is a legally binding agreement to deliver a metal in the future at an agreed price. Contracts are standardized by a futures exchange in terms of quantity, quality, term and place of delivery. Only the price is variable.
Hedgers use these contracts to manage their price risk in an anticipated purchase or sale of the physical metal. They also offer speculators the opportunity to participate in the markets by providing the margin required by the exchange.
There are two different positions that can be taken: a long (buy) position is a commitment to purchase the physical metal, while a short (sell) position is a commitment to purchase. The vast majority of futures contracts are deleted before the delivery date. This happens, for example, when an investor with a long position sells that position before the delivery notice.
PLATINUM SPOT PRICES VS. PLATINUM FUTURE AWARDS
There is usually a difference between the spot price of platinum and futures contract prices. The futures price, which we also show on this page, is used for futures contracts and represents the price payable on the platinum delivery date in the future. In normal markets, the forward price of platinum is higher than the spot price. The difference is determined by the number of days until the contract delivery date, prevailing interest rates and the strength of the market demand for immediate physical delivery. The difference between the spot price and the futures price, expressed as an annual percentage, is called the "forward rate".
CHANGE (CHANGE IN PLATINUM PRICES FROM PREVIOUS CLOSE)
This is the change in platinum price since the last close, which is not necessarily the previous day. On weekdays, from 6:00 pm New York time until midnight, the previous closing price for the current day applies. Here's why: The weekday market break time in New York is 60 minutes from 5:00 pm New York time to 6:00 pm. We use the last price at 17:00 as the closing price for that day. The change is always the difference between the current rate and the rate at 17:00. For example: Platinum was last traded at $1,000 at 5pm on Jan 17th. If it's January 17 at 6:30 p.m. and the price is $1002, we'll show a change of +2.00. If it is January 18 at 17:00 and platinum is trading at $1,025, we are showing a change of +25.00 at that time.
CHANGE IN PLATINUM FUTURES (CHANGE FROM PREVIOUS CLOSE)
This is the change in metal price from the price at the end of the previous trading session. Currently, the weekday closing time is 2:00 p.m. Eastern Time.
30 DAY CHANGE (30 DAY CHANGE)
This is the metal price change over a 30 day period as shown in the previous close.
1 YEAR CHANGE (1 YEAR CHANGE)
This is the metal price change from a year ago today versus the previous close.
HOW ARE LIVE SPOT PLATINUM PRIZES CALCULATED?
Each precious metals market has a corresponding reference price that is determined daily. These benchmarks are mainly used for commercial contracts and producer agreements. These benchmarks are calculated in part from trading activity on the spot market.
The spot price of platinum is determined from trading activity on decentralized over-the-counter (OTC) markets. An OTC is not a formal exchange and prices are negotiated directly between participants, with most transactions taking place electronically. Although unregulated, financial institutions play an important role by acting as market makers, providing bid and ask prices in the spot market.
I HEARD PLATINUM IS TRADE 24/7 - IS THAT TRUE? ARE THERE OPEN AND CLOSED?
Like other precious metals, platinum trades 23 hours a day from Sunday to Friday. Most OTC markets overlap; however, between 5:00 p.m. and 5:00 p.m. there is a one-hour time slot. and 6 p.m. ET, where no markets are actively trading. Since the spot rate is traded over-the-counter, there are no official opening or closing prices despite this one-hour closure.
For larger transactions, most bullion traders use a reference price that is determined at certain times during the trading day.
WHAT IS THE OFFER PRICE FOR PLATINUM?
The asking price is the highest price anyone is willing to pay for an ounce of platinum.
WHAT IS THE PLATINUM ORDER PRICE?
The ask price is the lowest price someone is willing to sell for an ounce of platinum.
WHAT DOES THE SPREAD MEAN TODAY FOR THE PRICE OF PLATINUM PER OZZLE?
The spread is the price difference between the bid and ask price. The platinum market is relatively small and can have greater diversification compared to gold and silver, which are much more liquid markets.
IS THERE A BENCHMARK FOR PLATINUM?
Because there is no official closing or opening price for platinum, some market participants rely on reference prices set by different organizations at different times of the day. These benchmarks are also called fixations.
The London Bullion Market Association (LBMA) is the main organization responsible for maintaining benchmarks for all precious metals. The LBMA platinum price is the universally accepted benchmark in the precious metals space.
The benchmark price is determined once a day in an electronic auction between participating banks at the LBMA administered by the ICE Benchmark Administration.
ARE PLATINUM PRICES PER OZ THE SAME WORLDWIDE?
An ounce of platinum is the same anywhere in the world and for larger transactions they are usually quoted in US dollars as this is the most active market; However, the value of an ounce of platinum can be higher or lower depending on the value of the local currency. Traditionally, currencies that are stronger than the US dollar have a lower value; However, currencies that are lower than the US dollar are valued higher. While platinum is primarily traded in ounces per US dollar, OTC markets in other countries also offer other weight options.
WHAT IS OZ, GRAMS, KILO, TOLA, (ETC.)?
Silver and most precious metals are priced in troy ounces; However, countries that have adopted the metric system report the price of gold in grams, kilograms and tons.
Grams = 0.032151 troy ounces
kg = 32,150747 Feinunzen
tons = 32,150,7466 troy ounces
Tael = 1,203370 Feinunzen
Tola = 0.374878 Feinunze
Although not as popular as the kilogram and gram, the tael is a measure of weight in China. The tola is a measure of weight in South Asia.
WHAT IS THE DIFFERENCE BETWEEN AN ONA AND A TROY ONA WHEN VIEWING A PLATINUM CHART?
A troy ounce is used specifically for weighing and pricing precious metals, and its use dates back to the Roman Empire when coins were valued by weight. The process was carried over to the British Empire, where a pound sterling was worth a troy pound of silver. The United States Mint introduced the troy ounce system in 1828.
A troy ounce is slightly heavier than an imperial ounce by about 10%. An imperial ounce is 28.35 grams, while a troy ounce is 31.1 grams.
WHY IS PLATINUM PRIVATE IN US DOLLARS?
Although you can buy platinum in any currency in the world, it's important to realize that ultimately it's all based on the value of the US dollar. Because of the importance of the US economy in the world, the US dollar is considered a reserve currency, meaning it is held in significant amounts by other governments and major institutions. Reserve currencies are used to process international transactions. The US dollar has been the dominant reserve currency worldwide since the beginning of the 20th century.
WHY ARE PLATINUM AND GOLD PRICES SO DIFFERENT?
The reason platinum prices trade differently than gold is due to a simple fact: supply and demand. The lower the supply of a metal, the higher the price. Unlike gold and silver, sentiment has little impact on platinum prices. Platinum is considered an industrial metal and has a very structured supply and demand model.
In recent years, low demand for diesel vehicles - platinum is the main metal used in diesel catalytic converters - has reduced demand for platinum while annual supply has remained relatively stable.
Platinum also has a small jewelry market, but this hardly affects prices.
WHAT IS THE LBMA?
The London Bullion Market Association (LBMA), headquartered in London, is an international trade association representing the precious metals markets including gold, silver, platinum and palladium. It's not an exchange. Current members include 140 companies made up of refiners, manufacturers, traders, etc. The LBMA is responsible for setting reference prices for gold and silver as well as platinum and palladium. For the refining industry, the LBMA is also responsible for publishing the Good Delivery List, which is widely recognized as the benchmark for the quality of gold, silver and PGM bars worldwide.
WHAT IS THE BIGGEST PLATINUM EXCHANGE-TRADED FUND (PPLT)?
Physically backed exchange traded funds have revolutionized the investing landscape over the past 15 years, and platinum is no exception. These products gave investors easy access to difficult markets. Among the PGM markets, Aberdeen Standard Investment manages the world's largest platinum-backed ETF with $765.2 million in assets under management.
WHAT MOVES PLATINUM PRICES?
It's important to note that platinum is a relatively small market, so prices can fluctuate dramatically. However, unlike gold and silver, platinum has a strong industrialized market, meaning it is sensitive to more supply and demand fundamentals. Platinum has seen renewed demand as automakers face tighter environmental regulations to reduce greenhouse gases. Auto companies are loading their catalytic converters with more platinum to meet these new standards. But even as demand increases, the market still has relatively stable supply-leading surpluses.
WHAT ARE THE MOST POPULAR PLATINUM COINS?
Unlike gold and silver, platinum does not have any significant physical markets. Few mints produce platinum coins. Both the US Mint and the Royal Mint of Canada produce platinum coins. In 2019, the US Mint only produced 40,000 platinum coins.