Platinum Price Today
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Platinum Price in US Dollars
Apr 06, 2020 18:24 NY Time
|Platinum Spot Price||Platinum Price Today||Change|
|Platinum price per ounce||738.00||-1.00|
|Platinum price per gram||23.73||-0.03|
|Platinum price per kilo||23,727.25||-32.15|
|Platinum price in pennyweight||36.90||-0.05|
|Platinum price in tola||276.75||-0.38|
|Platinum price in tael (HK)||896.88||-1.22|
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Platinum Price Guide
WHAT MAKES PLATINUM A PRECIOUS METAL?
This is a classification of specific metals that are considered rare and have a higher economic value compared to other metals. There are five main precious metals openly traded on various exchanges, platinum has the second smallest futures market. Other precious metals are sometimes referred to as monetary metals, but platinum has never been used as global currencies. However, some investors have seen the precious metal as a store of value in recent history. Along with being a precious metal, platinum is part of a unique subcategory referred to as Platinum Group Metals (PGM). A small amount of PGM metals are used in jewelry but they are mostly known for their industrial uses within the automotive sector.
Most of the platinum produced is used in the auto sector in auto catalytic converters, which are used to reduce emission from gasoline and diesel vehicles.
WHAT IS SPOT FOR PLATINUM?
The spot platinum prices refers to the price of the precious metals for immediate delivery. Transactions for bullion coins are almost always priced using the spot price as a basis. The spot market is trading very close to 24 hours a day as there is almost always a location somewhere in the world that is actively taking orders. New York, London, Sydney, Hong Kong, Tokyo, and Zurich are where most of the trading activity takes place. Whenever bullion dealers in any of these cities are active, we indicate this on our website with the message “Spot Market is Open”. For the high and low values, we are showing the lowest bid and the highest ask of the day.
PLATINUM PRICES - FUTURES MARKET
The platinum is one of a number of commodity futures, wherein contracts are entered into, agreeing to buy or sell the precious metals at a certain price at a specified future date. Platinum futures are used both as a way for producers and market makers to hedge their products against fluctuations in the market, and as a way for speculators to make money off of those same movements in the market.
A precious metals futures contract is a legally binding agreement for delivery of a metal in the future at an agreed-upon price. The contracts are standardized by a futures exchange as to quantity, quality, time and place of delivery. Only the price is variable.
Hedgers use these contracts as a way to manage their price risk on an expected purchase or sale of the physical metal. They also provide speculators with an opportunity to participate in the markets by lodging exchange required margin.
There are two different positions that can be taken: A long (buy) position is an obligation to accept delivery of the physical metal, while a short (sell) position is the obligation to make delivery. The great majority of futures contracts are offset prior to the delivery date. For example, this occurs when an investor with a long position sells that position prior to delivery notice.
SPOT PLATINUM PRICES VS PLATINUM FUTURES PRICES
There is usually a difference between the spot price of platinum and the future contract prices. The future price, which we also display on this page, is used for futures contracts and represents the price to be paid on the date of a delivery of platinum in the future. In normal markets, the futures price for platinum is higher than the spot. The difference is determined by the number of days to the delivery contract date, prevailing interest rates, and the strength of the market demand for immediate physical delivery. The difference between the spot price and the future price, when expressed as an annual percentage rate is known as the “forward rate”.
CHANGE (CHANGE IN PLATINUM PRICES FROM PREVIOUS CLOSE)
This is the change in the price of the platinum from the previous close, which is not necessarily the previous day. Weekdays from 6:00 PM NY time until midnight the previous close is from the current day. Here’s why: The time the market stops trading in New York on weekdays is for a 60 min period, from 5:00 PM New York time until 6:00 PM. We use the last quote at 5:00 PM as the close of that given day. Change is always the difference between the current price and the price at 5:00pm. For example: Platinum last traded at $1,000 at 5:00 PM on January 17. If it is January 17 at 6:30 PM and the price is $1,002, we will show a change of +2.00. If it is January 18 at 5:00 PM and platinum is quoted at $1,025 then we would show a change of +25.00 at that time.
PLATINUM FUTURES CHANGE (CHANGE FROM PREVIOUS CLOSE)
This is the change in the price of the metals from the price at the end of the previous trading session. Currently, the weekday closing time is 2:00 PM Eastern Time.
30 DAY CHG (30-DAY CHANGE)
This is the change in the price of the metals over a 30-day period as posed from the previous close.
1 YEAR CHG (1-YEAR CHANGE)
This is the change in the price of the metal from a year ago today, as opposed from the previous close.
HOW ARE THE LIVE SPOT PLATINUM PRICES CALCULATED?
Every precious metals market has a corresponding benchmark price that is set on a daily basis. These benchmarks are used mostly for commercial contracts and producer agreements. These benchmarks are calculated partly from trading activity in the spot market.
The spot price for platinum is determined from trading activity on Over-The-Counter (OTC) decentralized markets. An OTC is not a formal exchange and prices are negotiated directly between participants with most of the transaction taking place electronically. Although these aren’t regulated, financial institutions play an important role, acting as market makers, providing a bid and ask price in the spot market.
I'VE HEARD THAT PLATINUM IS TRADED 24/7 – IS THAT TRUE? IS THERE AN OPEN AND A CLOSE?
Like other precious metals, platinum actually trades 23 hours a day Sunday through Friday. Most OTC markets overlap each other; however, there is a one-hour period between 5 p.m. and 6 p.m. eastern time where no market is actively trading. Despite this one hour close, because spot is traded on OTC markets, there are no official opening or closing prices.
For larger transactions, most precious metals traders will use a benchmark price that is taken at specific periods during the trading day.
WHAT IS THE BID PRICE FOR PLATINUM?
The bid price is the highest price someone is willing to pay for an ounce of platinum.
WHAT IS THE ASK PRICE FOR PLATINUM?
The ask price is the lowest price someone is willing to sell an ounce of platinum.
WHAT DOES THE SPREAD MEAN FOR THE PLATINUM PRICE PER OUNCE TODAY?
The spread is the price difference between the bid and the ask price. The platinum market is relatively small and can have a wider spread compared to gold and silver, which are much more liquid markets.
IS THERE A BENCHMARK FOR PLATINUM?
Because there is no official closing or opening price for platinum, some market participants rely on benchmark prices, set during different times of the day by different organizations. These benchmarks are also referred to as fixings.
The London Bullion Market Association (LBMA) is the leading organization that is responsible for maintaining benchmarks for all precious metals. The LBMA Platinum Price are the widely accepted benchmarks in the precious metals space.
The benchmark price is determined once daily in an electronic auction between participating banks with the LBMA, which is administered by ICE Benchmark Administration.
ARE THE PLATINUM PRICES PER OUNCE THE SAME AROUND THE GLOBE?
One troy ounce of platinum is the same around the world and for larger transaction are usually priced in U.S. dollars as that is the most active market; however, the value of an ounce of platinum can be higher or lower based on the value of a nation’s currency. Traditionally, currencies that are stronger than the U.S. dollar have a lower value; however, currencies that are lower than the U.S. dollar have a higher prices. While platinum are mostly quoted in ounces per U.S. dollar, OTC markets in other countries also offer other weight options.
WHAT IS OZ, GRAM, KILO, TOLA, (ETC.)?
Silver and most precious metals prices are quoted in troy ounces; however, countries that have adopted the metric system price gold in grams, kilograms and tonnes.
Grams = 0.032151 troy ounces
Kg = 32.150747 troy ounces
Tonnes = 32,150,7466 troy ounces
Tael = 1.203370 troy ounces
Tola = 0.374878 troy ounce
Though not as popular as kilograms and grams, Tael is a weight measurement in China. The tola is a weight measurement in South Asia.
WHAT IS THE DIFFERENCE BETWEEN AN OUNCE AND A TROY OUNCE WHEN LOOKING AT A PLATINUM CHART?
A troy ounce is used specifically in the weighing and pricing of precious metals and its use dates back to the Roman Empire when currencies were valued in weight. The process was carried over to the British Empire where one pound sterling was worth one troy pound of silver. The U.S. Mint adopted the troy ounce system in 1828.
A troy ounce is about slightly heavier than an imperial ounce by about 10%. An imperial ounce equals 28.35 grams, while a troy ounce is equal to 31.1 grams.
WHY IS PLATINUM MOSTLY QUOTED IN U.S. DOLLARS?
While you can buy platinum in any currency in the world, it is important to realize that ultimately everything is based on the value of the U.S. dollar. Because of the importance of the U.S. economy in the world, the U.S. dollar is considered a reserve currency, meaning that it is held in significant quantities by other governments and major institutions. Reserve currencies are used to settle international transactions. Since the start of the 20th century, the U.S. dollar has been the dominant reserve currency around the world.
WHY ARE PLATINUM AND GOLD PRICES SO DIFFERENT?
The reason platinum prices trade differently to gold boils down to one simple fact: supply and demand. The less supply there is of a metal, the higher the price. Unlike gold and silver, sentiment has little impact on platinum prices. Platinum is considered an industrial metals and has a very structured supply and demand model.
Over recent years, low demand for diesel vehicles – platinum is the main metal used in diesel catalytic converters -- has reduced demand for platinum, at the same time annual supply has been relatively stable.
Platinum does also have a small jewelry market but this has little impact on prices.
WHAT IS THE LBMA?
Based in London, the London Bullion Market Association (LBMA) is an international trade association, which represents the precious metals markets including gold, silver, platinum and palladium. It is not an exchange. Its current members include 140 companies made up of refiners, fabricator, traders, etc. The LBMA is responsible for setting the benchmark prices for gold and silver as well as platinum and palladium. For the refining industry, the LBMA is also responsible for publishing the Good Delivery List, which is widely recognized as the benchmark standard for the quality of gold, silver and PGM bars around the world.
WHAT IS THE BIGGEST PLATINUM EXCHANGE-TRADED FUND (PPLT)?
Physically backed-exchange traded funds have revolutionized the investment landscape in the last 15 years and platinum is no exception. These products provided easy access to difficult markets for investors. Among PGM markets, Aberdeen Standard Investment runs the biggest platinum-backed ETF in the world with assets under management valued at $765.2 million.
WHAT MOVES PLATINUM PRICES?
It is important to note that platinum is a fairly small markets so prices can see dramatic fluctuations. However, unlike gold and silver, the platinum has a strong industrial market, which means that it responds to more supply and demand fundamentals. Platinum has seen some renewed demand because car companies have to meet tightening environmental conditions to reduce greenhouse gasses. Auto companies are loading their catalytic converters with more platinum meet these new standards. However even as demand grows, the market still has relatively stable supply leading surpluses.
WHAT ARE THE MOST POPULAR PLATINUM COINS?
Unlike gold and silver, platinum doesn’t have significant physical markets. Only a few mints make platinum coins. Both the U.S. Mint and the Royal Canadian Mint produce platinum coins. In 2019 the U.S. Mint only produced 40,000 platinum coins.