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5 best platinum stocks in 2023

Let's take a look at the top five platinum stocks that investors should consider adding to their holdings in this article.

Platinum or gold?

Platinum and gold are two of the world’s most valuable metals. Investors constantly seek opportunities to invest in these precious metals. This article will discuss the top five platinum stocks that investors should consider adding to their holdings for the whole duration of 2023. Additionally, we will examine the price comparison of gold and platinum and analyze why platinum has not maintained pace with gold’s gains in recent years.

Platinum is an uncommon and valuable metal with a wide spectrum of industrial applications. It is used, among other things, in catalytic converters, jewellery, and electronics. However, the global platinum market is relatively modest compared to other metals like gold and silver, with South Africa accounting for more than half of the world’s production. This makes the market more volatile, so investors must exercise caution when purchasing platinum stocks.

On the other hand, gold is a popular investment option due to its status as a safe-haven asset. It has been used as a reserve of value for centuries and has performed well during periods of economic uncertainty. In addition, unlike platinum, gold has a large market with numerous participants, making it a more stable market.

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Regarding the prices of gold and platinum, there is no apparent correlation. Historically, gold was more expensive than platinum, but in 2008 platinum prices surpassed gold prices. Since 2014, however, gold prices have consistently increased while platinum prices have declined, resulting in a significant price disparity between the two metals. As of April 11th, 2023, the price of gold per ounce is around $2,000, while platinum is priced at around $1,000 per ounce.

platinum vs gold

Platinum vs gold chart, source: macrotrends.net

Now, let’s evaluate the five finest platinum stocks for investors:

Anglo American Platinum Ltd (AMPLATS)

Anglo American Platinum is the world’s most potent producer of platinum, accounting for approximately forty 40% of global output. It operates several mines in South Africa and possesses a diversified portfolio of platinum group metal (PGM) assets. Its products include nickel, platinum, palladium, and rhodium.

You may also read: How to invest in silver

AMPLATS has been consistently profitable throughout the years, and its robust financial performance is evidence of its solid business model. In 2022, the company reported $9.6 billion in revenue and $2.2 billion in net income, a substantial rise from the prior year’s numbers.

Sibanye Stillwater Limited (SBSW)

South African mining corporation Sibanye Stillwater produces platinum group metals, gold, and other minerals. It operates multiple mines in South Africa and the United States and has a diversified mining asset portfolio.

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Sibanye Stillwater has performed well in recent years, and its finances have constantly increased. As a result, there was considerable growth from 2021 to 2022 in both sales ($8.7 billion) and profit ($2.3 billion) for the company.

Impala Platinum Holdings Ltd (IMPLATS)

Impala Platinum is a mining corporation in South Africa that produces platinum group metals such as platinum, palladium, rhodium, and nickel. It operates multiple mines in South Africa and possesses a diversified portfolio of mining assets.

In recent years, IMPLATS has faced many obstacles, including labor disputes and operational issues. Nonetheless, the organization has been addressing these obstacles and making progress. The corporation had a huge boost in revenue in 2022, reporting $5.2 billion in sales and a net profit of $739 million.

Platinum Northam Ltd (NHM)

Northam Platinum is a mining corporation in South Africa that extracts platinum group metals, such as platinum, palladium, and rhodium. It operates a diverse portfolio of resources in South Africa.

nORTHAM

Northam Platinum 1W chart, source: tradingview.com

In recent years, Northam Platinum has been performing well, and its finances have constantly been increasing. Revenues for the year was $1.9 billion, up from $1 billion in 2021, while net income was $347 million.

Impala Canada Ltd (ICL)

Impala Canada, a subsidiary of Impala Platinum Holdings, explores, develops, and produces platinum group metals in Canada. It operates the Lac des Iles Mine in Ontario, one of the world’s largest producers of palladium.

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ICL has performed well in recent years, and its financial position has constantly increased. The company reported revenues of $1.5 billion and a net income of $433 million in 2022, a significant increase over the previous year’s figures.

The prices of platinum stocks can be affected by various factors, including economic conditions, labor disputes, and geopolitical tensions, so investors should be aware of this risk. Therefore, before investing in any platinum stock, investors should undertake extensive research and consider diversifying their portfolios to reduce risk.

Final words

In conclusion, despite their historically volatile relationship, gold and platinum prices have diverged significantly over the past decade. Despite its industrial applications, platinum has yet to maintain pace with gold’s growth over the past few years.

Despite this, platinum remains in high demand, presenting investors with a potentially lucrative opportunity to invest in platinum stocks. Anglo American Platinum Ltd, Sibanye Stillwater Ltd, Impala Platinum Holdings Ltd, Northam Platinum Ltd, and Impala Canada Ltd are among the finest platinum stocks in a portfolio.

Before investing in any platinum stock, investors should be aware of the volatility of the platinum market and undertake extensive research.

Tomáš is a financial reporter with US markets as his main field. Tomáš is an aspiring author and entrepreneur aspiring to help people get better in financial knowledge.

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