Platinum Coins
Platinum investments took a new turn in 1983 when the Isle of Man, a British Crown Possession which is entitled to use its own currency, issued one ounce Noble made of platinum. It opened the door to investing in platinum coins –something which wise investors had been waiting for. Legal tender made of bullion, be it gold silver or platinum is considered by most investors as the safest way to own the metal. The value of the coins in terms of weight and purity is backed by a government and so there is no need to assay them. They are also highly portable and the aesthetics usually only add to their appeal.
The huge success of the Isle of Man’s initiative in issuing platinum coins inspired other governments to also take the plunge. Within five years of the Noble coming into circulation Australia issued the Platinum Koala and Canada the Platinum Maple Leaf as legal tender. Although both coins made their appearance within a few months of each other, they were highly successful and were in great demand by investors.
For the next nine years Australian and Canadian coins were the leading platinum coins in the world. During the 1990s a number of limited edition high value platinum coins were issued but they were for numismatic purposes only and were collectors’ items and not legal tender.
In 1997 the US Mint finally joined the platinum bandwagon with the launch of the Platinum American Eagle. The arrival of this coin saw the investment levels double in the space of just one year. The Platinum Eagle soon became the preferred platinum investment option and the demand for these coins was so great that most denominations sold out almost immediately. In 1998 the US mint launched the Vistas of Liberty series of Platinum coins in a limited time program that ran till 2005.
While the modern investor in platinum has the options of investing in the form of exchange traded futures and options, bullion bars, and numismatic coins, legal tender coins remain extremely popular with those who prefer to have the purity of their investment backed by government guarantee as well as the ease of exchange and conversion that these coins offer. Another benefit that many investors like is their easy storage and transportability.
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