Top Performing Platinum Stocks

The post Top Performing Platinum Stocks by Jay and Julie Hawk appeared first on Benzinga. Visit Benzinga to get more great content like this.

The global push for green energy has also spurred the growth of emerging technologies that make considerable use of platinum group metals (PGMs). This has the potential to make platinum mining stocks a great long-term investment. For example, electric vehicles (EVs) require PGMs for their lithium-ion batteries. 

Furthermore, another application for PGMs has recently emerged for a new type of automobile known as a hydrogen fuel cell vehicle. As society transitions to more sustainable energy sources, green hydrogen technologies promise to transform the energy industry, so platinum and the other PGMs are expected to play an important role.

Best Platinum Stocks to Invest in

Best Platinum Stocks

Check out the best platinum stocks below.

Anglo American Platinum (OTCPK:ANGPY)

Johannesburg, South Africa-based Anglo American Platinum is the world’s leader in the production of PGMs and accounts for 38% of the world’s total platinum production. Anglo American is a transnational company with offices in North and South America, China, South Africa and Europe. The company provides complete resource-to-market services, including mining and recycling to its global network of clients. In addition to platinum, the company also produces rhodium, iridium, palladium, ruthenium and osmium. Anglo American is also the world’s primary recycler and processor of used and spent catalytic converter materials.

Impala Platinum Holdings (OTCQX:IMPUF)

Founded in 1966 and based in South Africa, Impala Platinum Holdings or Implats is a holding company with interests in several mining companies that produce platinum, palladium and other PGMs, as well as copper, cobalt and nickel. The holding company’s most important asset is the Impala mine in South Africa’s North West province. Other interests include the Mimosa and Zimplats mines in Zimbabwe, and the Marula and Two Rivers mines in the South African Bushveld Igneous Complex. The company acquired the Canadian North American Palladium company and its mine in Ontario to form Impala Canada.

Sibanye Stillwater (NYSE:SBSW)

Founded in 2013, Sibanye-Stillwater Limited is a global precious metals mining company based in Weltevreden Park, South Africa with operations in Southern Africa and North and South America. The miner’s diverse holdings include gold and PGM mines in Canada, Argentina and Zimbabwe. Sibanye-Stillwater’s U.S. assets include the Stillwater and East Boulder mining operations in Montana, which are the largest PGM mining operations in the United States. As of December 2020, its PGM mining operations in the U.S. had 26.9 million ounces of proven and probable PGM mineral reserves and 86.9 million ounces of mineral resources.

Vale (NYSE:VALE)

Founded in 1942 as the Brazilian state-owned Companhia Vale do Rio Dolce, Vale S.A. became a private company and eventually one of the largest mining companies in the world. Rio de Janeiro-based Vale operates in approximately 30 countries and is the world’s largest producer of iron ore, pellets and nickel. In addition to its mining operations, Vale provides infrastructure development services that include constructing ports, railways, terminals and steel and energy manufacturing facilities. As the world’s 2nd largest nickel producer, Vale can extract platinum as a byproduct of its extensive nickel mining operations. The company currently produces approximately 134,000 ounces of platinum annually. 

Platinum Gr Metals (AMEX:PLG)

Based in Vancouver, Canada, Platinum Group Metals Ltd. was founded in 2000. The company explores and develops platinum and palladium properties. In addition to its Canadian mining interests, Platinum Group Metals also develops South African mining properties, including the Waterberg project on the Northern Limb of the Western Bushveld complex. Platinum Group Metals also develops next-generation battery technology that uses platinum and palladium. At current prices, PLG stock qualifies for Benzinga’s best stocks under $5 and stocks under $10 lists.

Overview: Platinum Stocks

Platinum is a ductile, malleable metal with a silvery-white appearance. It has the symbol Pt and the atomic number 78. The precious metal is among the least reactive metals and has high resistance to corrosion even at elevated temperatures. This qualifies platinum as a “noble metal.” 

First used by pre-Columbian South American civilizations for making artifacts, native platinum can be sourced in the alluvial sands of rivers. The metal was referenced as early as the 16th century, but it was not investigated until a report was published by Antonio de Ulloa in 1748. 

South Africa produces approximately 80% of the world’s platinum, which totals just a few hundred metric tons globally every year, thereby making the metal a relatively rare commodity. In addition to its major use in autocatalytic converters, platinum has a number of other uses including, electrodes and electrical contacts, dentistry equipment, jewelry and platinum resistance thermometers.   

Platinum’s spot price has fluctuated between $800, where it traded in June 2020, to a high of $1,310 in February 2021. The metal’s current spot price is $1,067.77. Platinum and other PGMs rank among the precious metals alongside gold and silver, with their industrial uses increasing as innovation and new technologies emerge.  

Despite the economic slowdown during the COVID-19 pandemic shutdowns, platinum miners and their stocks have recovered significantly, with production now approaching normal levels. Since many investors consider diversifying into precious metals a prudent strategy, buying platinum stocks could make sense, especially if you think platinum will rise in value. 

Best Online Brokers for Platinum Stocks

Most brokers will let you purchase American Depository Receipts (ADRs), but if you intend to purchase over-the-counter (OTC) stocks, make sure your broker provides access to that market, and ask what commissions they charge for that type of trade. Check out a broker comparison table below. 

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Best For

Active and Global Traders

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get started securely through Interactive Brokers’s website

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Best For

Active and Global Traders

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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Best For

Leveraged Trading

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get started securely through Plus500’s website

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Disclosure: 80% of retail accounts lose money

Best For

Leveraged Trading

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80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments. 

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

The Plus500 CFD platform is for CFDs. The Plus500 Futures platform offers futures for U.S. customers, and Plus500 Invest offers stock trading.

Best For

• Traders looking for a smooth mobile experience

Pros

• Great mobile app
• Low spreads and commissions
• Unlimited demo account

Cons

• Only derivatives are available
• Not open to U.S. residents

Best For

Trading Ideas

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get started securely through public.com’s website

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Trading Ideas

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Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

Best For

Commission-Free Mobile Trading

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get started securely through Robinhood’s website

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Commission-Free Mobile Trading

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Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Best For

Active Short Sellers

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get started securely through TradeZero’s website

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Active Short Sellers

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1 Minute Review

TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.

Best For

• Traders seeking high transparency and mobility in a stock trading program
• Those attracted to commission-free trades
• Those seeking a free version of a high-quality trading program

Pros

• 24/7 live customer support
• Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
• Mobile app allows users to access stocks and trade in real-time while on the go

Cons

• Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
• Mobile app could offer more features

Features to Look for in a Platinum Stock

Knowing what to look for in platinum stocks can help you align your stock picks with your investing goals. Here is what to look for in platinum stocks.

Type of Miner 

Because of platinum’s rarity, most pure-play platinum mining stocks consist of small microcap companies that can pose significant risks for investors. Some investors, therefore, prefer to select major miners that obtain most of their profits from mining other metals. They might also choose to invest in automotive or jewelry manufacturing companies that use large amounts of platinum in producing their respective goods.  

Fundamentals 

The underlying fundamentals of any publicly traded company tend to influence whether its stock will appreciate in the future. Take into account a company’s current profitability, its level of debt, future prospects for its products, its management and other fundamental considerations when selecting a stock to invest in. The stock’s earnings per share and other fundamental metrics can serve as useful indicators when determining if a stock’s price is likely to rise or fall in the future. 

Partnerships 

While smaller platinum reserves can be found in the U.S. and Canada, Russia and South Africa account for roughly 90% of world production. Most miners situated outside of those two key producing countries need to partner with or lease mines from local companies. Platinum mining can be affected by geopolitical events and natural disasters that occur where platinum deposits are located.  

Are Platinum Stocks Good Investments?

With the global move toward greener and more sustainable energy and transportation options, the use of platinum and other PGMs will likely increase in the future. This could make investing in platinum miners an excellent opportunity for investors looking to profit from this technological trend, while companies that use platinum in manufacturing their products can have a notable exposure to a rise in the metal’s price.

The stocks of the mining companies reviewed above also represent relatively “pure” platinum plays, which means that the firms directly benefit from platinum mining operations, exploration and production. Among our platinum stock selections, only PLG does not qualify for Benzinga’s stocks under $20 category, and they all represent solid investments in the platinum industry. 

Most automakers rely heavily on platinum for the catalytic converters used in gas-powered vehicles. Automakers also own most of the patents for hydrogen fuel cells that will probably power new technologies in the industry. Jewelry makers also have a considerable exposure to the price of platinum. Companies that could have their profits hurt by higher platinum prices include automakers like General Motors (NYSE: GM) and Toyota (NYSE: TM) or jewelry makers like Tiffany’s (NYSE: TIF). 

Frequently Asked Questions

The post Top Performing Platinum Stocks by Jay and Julie Hawk appeared first on Benzinga. Visit Benzinga to get more great content like this.