Platinum has metallic properties that make suitable for numerous commercial and industrial applications. The metal not only has a high resistance to temperature, it also does not oxidize when exposed to air and in addition it also does not react to chemical onslaughts and has the ideal properties for conducting electricity. It is however, corroded by caustic alkalis, cyanide, halogens, and sulphur.
Platinum is considered to be one of the world’s most precious metals, thirty times rarer than gold with large deposits found on the moon and from meteorites, thus finding this material on Earth can prove to be difficult. Of the platinum found on Earth, 80% of it comes from South Africa, 11% in Russia, and the remaining 6% in North America.
Its aforementioned properties make it a highly demanded metal with various industries. This ranges from Jewelry to cars to health sciences and many more.
Like all commodities, platinum possesses its own trifecta, a contract value, margin requirements, and ticker symbol. To successfully trade the commodity, one must be fully aware of these three components and learn how to utilize them in order to be able to calculate potential profit gain or loss.
Future contracts for platinum are traded on the New York Mercantile Exchange (NYMEX) via open-outcry through the Commodity Exchange (COMEX) division. It may also be electronically traded via the Chicago Board of Trade (eCBOT) and the Tokyo Commodity Exchange (TOCOM).