We have assigned intrinsic worth to specific items and conducted trades based on that value since the beginning of our economic ventures. Despite the fact that equities, virtual assets, and cryptocurrencies have transformed the atmosphere, precious metals remain a crucial element of today’s economy.
Expanding the concept further, commodities and precious metals are thus an excellent investment opportunity for today’s post-pandemic time, with PGMs leading the market. The platinum group metals (PGMs) are a set of six metallic elements with comparable physical and chemical characteristics that occur in the same geological formations. These include platinum, palladium, rhodium, ruthenium, osmium, and iridium.
All these metals have profitable prospects; however, platinum is the most stable and sustainable among all.
3 Canadian Platinum Stocks You Should Invest In
Here are three of the best platinum stocks for Canadian investors.
Franco-Nevada Corporation (TSX:FNV)
Franco-Nevada Corp is a commodity futures royalty and investment firm. The firm holds a diverse portfolio of precious metals and royalty lines that it actively manages to earn a substantial portion of its income from gold, silver, and platinum. The firm neither owns nor oversees mines, nor does it develop projects or perform exploration.
Franco-Nevada’s short-term economic success is dependent on the cost of metals and the level of production from its portfolio of productive businesses. Its long-term profitability can be determined by the supply of investment and production resources. The firm has a portfolio of assets that are diverse in terms of commodity price, income source, and project stage and are predominantly situated in the United States, Canada, and Australia.
With a market capitalization of 37,143,624,434, it is one of Canada’s largest platinum group metals producers. It pays a quarterly dividend of 0.32 USD per share.
Sibanye Stillwater Limited (NASDAQ:SBSW)
Sibanye Stillwater Ltd is a mining firm based in South Africa. The Cooke, DRDGOLD, Driefontein, and Kloof operations in the West Witwatersrand region and the Beatrix operation in the southern Free State province are now owned and operated by the Group.
Aside from mining, the firm owns and operates recovery and processing plants at its facilities, where gold-bearing ore is processed and beneficiated to generate gold dore. The gold dore is refined further at the Rand Refinery into gold bullion with a concentration not less than 99.5 percent before being sold on foreign markets. Sibanye owns 44 percent of Rand Refinery, one of the world’s largest gold refineries and the largest in Africa. In addition, Rand Refinery sells gold to consumers all around the world.
It is among the biggest mining companies, employing 53,000 people across the globe and having a market capitalization of 8,560,113,177. It is currently trading at a 3-month low share price of $12.10, making it an excellent investment option.
Wheaton Precious Metals Corp. (TSX:WPM)
Wheaton Precious Metals Corp is a precious metal streamer. The business has signed over 20 long-term sales contracts for precious metals and cobalt mining with 17 different mining and development companies. In addition, it has streaming agreements spanning about 19 active mines and nine development phase assets. Vale’s Salobo mine is one of the company’s projects, as are silver streams on Glencore’s Antamina and Goldcorp’s Penasquito mines.
Its business strategy provides investors with exposure to commodities pricing and exploration potential while posing far fewer risks than a typical mining firm. Wheaton has one of the most excellent cash operating margins in the mining sector, enabling it to maintain a competitive dividend while expanding through accretive acquisitions. Currently, it pays a quarterly dividend of 0.15 USD per share, promising a dividend yield of 1.353%.
It is the biggest metal product manufacturing firm with a market capitalization of 25,673,391,451. Its present earnings per share of 2.10 coupled together with the P/E ratio of 27.00 make it a long-term success.
2 Canadian Platinum ETFs You Should Invest In
For Canadian investors looking for the most profitable ETFs, here are two platinum ETFs.
Aberdeen Standard Physical Platinum Shares ETF (NASDAQ:PPLT)
Aberdeen Standard Physical Platinum Shares ETF is a leading gold and platinum exchange-traded fund. The investment tries to replicate the performance of the actual platinum price, minus the Trust’s operating expenditures. The fund is intended for investors seeking a low-cost, simple alternative to investing in platinum with little credit risk. Investing in stocks includes ease and flexibility of investment, low expenses, and little credit risk.
This precious metals ETF is traded on the electronic market NYSE, Arca, and Nasdaq. For good delivery, PPLT rates platinum based on the London Platinum and Palladium Market requirements. Physical platinum housed in safe vaults in London and Zurich backs the fund.
Currently trading at a share price of $89.36, about 7% more than the 52-week low of $83.20, it is the right time to invest in this ETF.
GraniteShares Platinum Shares (NASDAQ:PLTM)
PLTM, like PPLT, is organized as a grantor trust backed by actual platinum housed in a vault. The vault is in London, and it is examined twice a year. Metal lending is prohibited, and the trust is not authorized to own derivatives. The fund’s purpose is to provide a low-cost option to invest in platinum by following the current price of platinum minus the fund’s expenditures.
The investment trust tries to represent the value of the Trust’s assets at any given moment minus the Trust’s accumulated costs and obligations at that time. The Shares are meant to be a simple and cost-effective way to make an investment equivalent to a platinum investment. An investment in allotted actual platinum bullion necessitates costly and sometimes intricate arrangements for the metal’s assay, transit, and storing.
Although it is not diverse, it holds $43.1 million as assets under management and has a three-month average daily trading volume of 44,550.
Why You Should Invest in Platinum Stocks in Canada
Commodities have outperformed amid the current turmoil. As a result, the asset class may be a critical component of a well-balanced exchange-traded fund investment portfolio, both in stormy times and as a strategic, long-term allocation.
Another facet of the commodity market is that it can be severely affected by geopolitical/economic conditions, especially tensions between world powers. The Russia-Ukraine conflict exemplifies this claim.
Keeping all of this in mind, the best course of action is to invest in commodities ETFs rather than directly purchasing and keeping the precious metal or purchasing stocks in an excavation, processing, development company, or other mineral exploration companies.
The Bottom Line
According to market conditions and stock analysts, the platinum ETF market is the most profitable alternative with steady low-risk elements. In addition, industrial minerals, rare earth elements, and the production of PGMs all point to the growth of these ETFs, further making them profitable.
Investing in Platinum in Canada
Canada is taking steps to consolidate its status as a global mining leader and ensure that the mineral and metals industries continue contributing to Canadians “prosperity. For example, nickel Creek Platinum Corp. is a Canadian mining exploration, and development company focused on developing its Nickel Shaw project, which will be 100% owned by Canada’s first world-class nickel sulphur mine.
Platinum is a dense, malleable, ductile, non-reactive, noble, silvery-white transition metal. It is one of the rarer elements in the earth’s crust, with an average frequency of 5 mg/kg. The name platinum is derived from the Spanish word Platino which means “little silver,” and is a member of the platinum group of elements, a group of 10 periodic table elements.
Platinum is a valuable industrial metal used to manufacture products such as cars, jewelry and electronics. Therefore, platinum is regarded by many investors as an essential precious metal and is often mentioned alongside gold and silver. To deal with platinum, investors can buy platinum bullion, coins, platinum futures contracts and shares from platinum mining companies.
Platinum ETFs are invested in futures contracts that track the metal’s price rather than keeping the metal in physical form. The share price of mining companies in the platinum group (PGM) tends to follow the underlying prices of platinum, palladium and rhodium. Platinum ETFs aim to track the price of platinum metal by holding platinum futures contracts, not by owning shares in platinum mining companies.
PLG does not fall under the Gasoline Gas Stock 20 category in our platinum stock selection, but the mining companies surveyed represent solid investments in the platinum industry. In addition, the shares of these companies represent pure platinum games, which means that they benefit from platinum mining through exploration and production. Platinum is a rarity, and pure platinum mining stocks consist of small and micro-cap companies that pose a significant risk to investors.
Since the precious metals market is volatile, investments in physical precious metals may not be suitable for most investors. Fluctuations in the gold and precious metal price can affect the profitability of companies in the gold / precious metals sector. You cannot purchase precious metals through Fidelity pension plans, and Keogh restricts certain types of investments in Fidelity IRAs.
Fidelitrade Incorporated is an independent company headquartered in Delaware that provides the sale and support of precious metals, including the purchase, sale, supply, storage and custody of services to individuals and businesses. The information provided here is for informational purposes only and not for commercial purposes or advice. Data provided here for informational purposes only and not intended for commercial purposes.
Platinum Group Metals produces silver from the Cosala plant in Mexico and the Galena mine complex in Idaho. Canada and Australia have large mining sectors in which large mining companies and the mining services industry maintain a significant global presence. The Toronto Stock Exchange (TSX) and TSX Venture Exchange are home to more than 50 of the world’s largest publicly traded mining companies, and more than $18.9 billion worth of mining stocks were traded in 2016 on both exchanges.
Platinum Group Metals differs somewhat from its peers in that it focuses on exploration and mining, but it is also a diversified mining company. The company did its best to post news to explain the rise in its share price on February 12, when it entered into a $29 million subordinated credit facility.
Thirty-one non-ferrous smelters and refineries in Newfoundland and Labrador, New Brunswick, Quebec, Ontario, Manitoba, Alberta and British Columbia process various products, including nickel and copper, aluminum gold, silver, cobalt, lead, bismuth, platinum group metals and others. In contrast to mineral exploration, her work focuses on traditional mineral metals such as gold, copper and nickel. Investors can also invest in automotive and jewelry manufacturers that use large quantities of platinum to produce their respective goods.
This increase invests in platinum miners, an excellent opportunity for investors seeking to benefit from technological trends. Companies that use platinum to manufacture their products are also exposed to significantly rising metal prices. PLTM aims to provide a cost-effective way to invest in platinum by tracking the platinum price on the spot market without funds expenses.
The MAC’s commitment to responsible mining was established in 2004 to permit mining companies to satisfy societal needs for minerals and energy products socially responsible.