Platinum Eagles coins Soar
Information for ‘Platinum Beyond the Bench’ is provided By the World Platinum Investment Council (WPIC)
Launched in 1997, American Eagles are the US’s official platinum bullion coins and the only platinum bullion coins of which the weight, content, and 99.95 percent purity are guaranteed by the US government. All American Eagle platinum coins are legal tender – and the 1 oz coin, which since 2014 is the only size issued, has a $100 face value although, in practice, the coins are not used in circulation.
Platinum Eagles are often purchased by investors seeking an easy – and accessible - way of adding physical platinum to their investment portfolios; the US Mint issues 1 oz American Eagle platinum bullion coins in response to ongoing investor demand.
This year’s program has actually been extended due to exceptional demand from investors seeking to own physical platinum in the wake of the Covid-19 pandemic. Cumulatively, by the end of April, sales of the 1 oz Platinum Eagle in 2020 had already reached 56,500 oz, a figure that is close to exceeding the 1999 annual total of 56,707 oz – the second-highest on record (beaten only by the 133,002 oz sold in 1998).
Why platinum bullion?
Platinum bullion is an umbrella term that refers to two types of investment product – bars and coins – that share common characteristics, with guaranteed purity of 99.95 percent being the key criterion. Platinum bullion products are attractive to investors seeking portfolio diversification as well as a long-term store of value. In the US, platinum bullion can be held as an asset in an IRA.
Platinum bullion products also offer investors liquidity, as they can be bought and sold easily, with the value derived from the purity or ‘fineness’ of the platinum as well as the prevailing spot market price for platinum, adjusted slightly to include manufacturing costs and supplier margin.
In the current environment, investors are turning to hard assets like platinum bullion to militate against the significantly increased global risk associated with the unfolding economic impact of the pandemic.