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There has been an influx of new precious metals investors in recent months. Many come for the promise of profits, and others want a reliable store of value. Regardless of the reasoning, a time to sell will likely come. And if you’re selling platinum, there are a few things you should know.
Platinum stands out from other popular bullion options for a variety of reasons. One of the most important is that the precious metal held more value than gold for over 10 years. While many investors have short memories, this happened not more than a decade ago.
Whether you’re selling platinum for the first or hundredth time, there are certain issues you should understand. This will help you secure the best price while avoiding common pitfalls. Because when you make smart investment decisions, profit is typically a given.
Patience with Selling Platinum Might Pay Off
If your goal when buying platinum bullion was to quickly make a profit, there are plenty of “right times” to sell. For instance, $2,400 worth of platinum purchased in March 2020 was worth over $5,200 by February the next year. With that sort of performance, it was no doubt tempting to sell.
If your goal in selling platinum is to maximize profit, though, you might do better to hold off. There’s no guarantee that the metal will perform well in the future, but there are several indicators pointing to this possibility. Just consider the following factors that are likely to drive the price up:
- No more surplus: A nearly two-decade oversupply of platinum helped drive its price down. In 2019, this surplus changed to a deficit. Analysts predicted 2021 would be the third straight year of platinum deficits.
- Auto industry demand: Palladium has long been the metal of choice for creating catalytic converters. This eventually led to high costs, but platinum can replace the metal in these auto parts. The industry seems poised to make this move.
- Green energy demands: Demand for hydrogen fuel cells has increased exponentially as the world focuses more on green energy. Fortunately for those selling platinum, the precious metal is an integral component of these cells.
- Jewelry demand to return: After a rough 2020, the World Platinum Investment Council predicted jewelry demand would increase by 13% in 2021. Due to the popularity of the metal in jewelry, this will likely drive platinum prices up.
Fortunately for investors interested in selling platinum, these aren’t unlikely predictions. In April 2021, Reuters told its readers “decade-long platinum decline ends as hydrogen boosts outlook.” The factors that could blast platinum’s price into the stratosphere are already having an effect.
Of course, any decision you make should take your investment goals into account. Quick profits can be appealing, but if your goal is maximizing profit, going long-term on the metal may be best. By basing your buy/sell decisions on your financial plans, you’ll be able to work from an informed position.
Prices Can Fluctuate Quickly
While silver seems to be the most volatile of the precious metals, platinum’s price can quickly change as well. For instance, one day in March 2020 saw the metal’s value drop by more than 25%. Gold, silver, and palladium also decreased that day, but this shows quick price shifts are possible.
This means a few things for those interested in selling platinum. First, it’s not typically wise to jump on selloff bandwagons. The one day drop in March 2020 was a temporary fluctuation, and the price bounced back to double that low point in less than a year.
Second, you should act quickly if platinum hits a price you want to sell at. Imagine you decided to sell your bullion when the price hit $760 an ounce on March 13, 2020. Then imagine you waited a few days and didn’t sell it until March 19 — when the price had dropped to $595.
The lesson here is that — if your plan is selling platinum at a specific price — waiting can turn costly. When you sell your bullion to Silver Gold Bull, we lock in your price so you don’t have to deal with potential losses in value.
You’re Unlikely to Get Spot Price
New investors are often surprised when they go to sell bullion for the first time. They saw specific prices on precious metal charts, but when they go to sell, they’re typically offered less. While this can be shocking for novices, experienced investors know to expect it.
The reason you’ll see this variance is because dealers have to cover their costs. If they got into the habit of buying and selling platinum at spot price, they’d make no profit whatsoever. Some people think they can avoid this by selling on eBay, but even that has its issues.
If you are really committed to selling platinum but want more profit, consider selling just a portion of your investment. This will help you get quick cash if you need it, and you’ll still have bullion on hand in case the price later skyrockets.
Selling Platinum on eBay Can Be Costly
The fees you’ll encounter selling precious metals on eBay can add up quickly. Unfortunately, these aren’t the only costs you’ll incur. Even if you consider insurance costs and the hassle of dealing with lost packages, you still won’t get the full scope of how much money you could lose.
Have you ever heard of the empty box scam? This happens when a buyer receives their item and then falsely reports that the box was empty. eBay often sides with the buyer, so it will be up to you to prove otherwise.
If you’re lucky, the buyer will get caught in a lie by claiming the box was empty — even though the package weight shows it obviously wasn’t. If they just bought one lightweight platinum coin, though, this could be difficult to prove. With a single eBay transaction, you could lose thousands.
It’s Best to Sell to a Reputable Dealer
Even if you’ve decided selling platinum on eBay is too risky, it doesn’t stop you from selling on other marketplaces. After all, resources like Nextdoor and Facebook Marketplace make it easier than ever to sell your items locally. Unfortunately, this also comes with inherent risks.
Many criminals have turned to these platforms to target victims. They’ll show interest in buying an item, but then they rob the victim during their meeting. If you go the route of private sales, you should always meet at a police station to reduce your risks.
You’ve likely also considered selling platinum to your local precious metals dealer. Unfortunately, you’ll often get a lower price than you would with a larger company. That’s because small businesses have higher overhead percentages and fewer resources.
Sell Platinum Today With Silver Gold Bull
While gold and silver might get more attention, platinum consistently proves its worth on the market. While no one can say for certain what the future holds for the metal, all signs currently point toward profit. For those who invest wisely, this can mean continuous financial security.
The most important thing you can do with platinum investing is to remain vigilant. Prices can fluctuate at any given time, and while selling now might seem wise, the future of green energy makes the prospect of impressive long-term gains viable. Simply put, pay attention to the market.
At Silver Gold Bull, we strive to meet every need of our clients. If you’re selling platinum bullion, we offer a safe and easy process for doing so. And once you lock in the price, that’s what you’ll get even if the metal’s value drops. Visit our Sell Bullion page today to get started.
