You have gold coins. You have silver bars. Should you diversify your physical metals portfolio by adding 1-ounce Platinum coins? From a purely financial perspective, physical platinum is one of the most difficult assets for a retail investor to profit from.
1. The Problem of Dealer Spreads
When you buy a 1oz gold coin, you might pay a 3% premium over the spot price. When you sell it back, the dealer might pay you 1% under spot. The total "spread" (friction cost) is 4%.
Platinum is traded in much smaller volumes. Because dealers sit on platinum inventory for months, they charge massive premiums. It is common to pay 10% to 15% over the spot price to buy a physical platinum coin. Worse, when you sell it back, they might offer you 10% under spot.
This means the platinum price has to go up 20% to 25% just for you to break even on the trade!
2. VAT and GST
In India, platinum attracts a 3% GST. In Europe, it attracts a massive 20% VAT (unlike gold, which is often VAT-exempt for investment). This immediate tax hit destroys short-term ROI.
3. Terrible Liquidity
If you need cash urgently, you can sell a gold coin at any jewelry shop on any corner in the world within 10 minutes.
If you walk into a standard jewelry shop with a 1oz Platinum coin, they will likely refuse to buy it. They do not have the equipment to test it, and they do not deal in the bullion. You must mail it back to major bullion dealers, which takes time and incurs shipping/insurance costs.
The Better Alternative
If you believe the price of platinum is going to skyrocket due to supply shortages in South Africa or changes in the automotive industry, do not buy physical coins.
Instead, look into Platinum ETFs (Exchange Traded Funds) traded on global exchanges, or buy stocks in platinum mining companies. Paper platinum avoids the massive dealer spreads, making charges, and liquidity nightmares of the physical coins.