Platinum and Palladium

While silver may be a good long–term buy, there are other, and perhaps even more fundamentally sound, precious metals to choose from. Only a tiny percentage of investors purchase platinum and palladium — both of which have seen their prices rise over the past two years — as a U.S.–dollar alternative. Instead, the price is driven almost exclusively by industrial demand. The main use for both metals is to create catalytic converters, a device in cars that reduces the toxicity of emissions. As the auto sector recovers, and emerging–market demand for vehicles increases, more converters will have to be made.

For these metals, demand is already outpacing supply. For years, Russia, one of the main producers of palladium, stockpiled the commodity to keep prices stable. But that supply is nearly tapped, so Russia is no longer able to keep a cap on prices. "They've sold off the majority of their reserves," says Brahm Spilfogel, a vice–president and portfolio manager at RBC Asset Management. "You've lifted one negative element to palladium." The metal is primarily mined in South Africa, which, says Darren Lekkerkerker, manager of the Fidelity Investments Global Natural Resources Fund, doesn't have enough power to facilitate a supply increase. The mines are deep and costly to run, and many companies can't generate positive cash flow. All of this has pushed palladium prices through the roof. Since January 2009, the metal has jumped from about $200 to $800 per ounce.

Platinum is in high demand too. Its price has been on a steady increase for the past two years, climbing from around $800 an ounce in early 2009 to $1,800 today. The platinum–to–gold ratio is currently low — at one time, platinum was double the price of gold, but now it's about 1.35 times, meaning its price has room to grow. That makes palladium and platinum a better bet for more value–oriented investors.

Happy New Year

With the dawn of 2011, we are all looking forward to new beginnings. At the Platinum Ring Company we are no exception. We have recently created a new website that is easier to use and has a larger selection of premium platinum rings for you to choose from. We are, as ever, working to create more amazing lines of platinum products for our clients. The economic climate for the current year may seem bleak at the offset; however investing in precious metals may be a good way to secure a financial future. The value of platinum may waiver fractionally over the years, but it maintains a solidly high base level of value.

In 2011, we may have to tighten our belts in many areas but one area that will not be quenched is that of love. The countdown to Valentine’s Day has already begun, with people beginning to save up in order to buy their prospective partners a ring. It would appear that the economic down turn has not affected the rates of couples deciding to tie the knot. Many of whom are opting for platinum engagement rings to show a real sense of dedication and passion for their partners. Platinum is the perfect material for both engagement and wedding rings, as it is a hard wearing metal that won’t tarnish like many other popular metals. Fashion jewellery is increasingly focused on high sheen materials; platinum offers an excellent alternative to silver when buying prime pieces of jewellery.

The Platinum Ring Company offers a large selection of wedding rings. These pieces are created to the highest standards and all feature the necessary hallmarks and certificates. They have a beautiful range of two coloured wedding rings, made of quality platinum transposed with 18ct gold. This creates a striking contrast of colour, making your wedding ring a statement piece that will last a lifetime.

The Platinum Ring Company would like to take this opportunity to wish you all a joyous 2011, filled with love and prosperity.