Platinum is an extremely rare metal that is in high demand. Not only is it used in jewelry, it has applications in electrical circuits and medicine.
There is reason to think platinum prices could be ready to rise. The primary reason is that several platinum mines have closed while demand remains strong. If supply continues to trail demand, the price could go up dramatically. (See also: These Charts Suggest Now Is the Time to Buy Platinum.)
These five stocks were chosen based on the companies’ abilities to quickly deliver increased amounts of platinum if demand soars. In other words, there are no startups on this list.
However, there are stocks here that are priced under $5 per share. When a stock is that cheap, it tends to be more volatile than higher-priced stocks. Of course, when an inexpensive stock makes a move upward of even a few cents, this can mean a higher percentage gain for investors when compared to a more expensive stock that moves a few cents. All figures are current as of July 17, 2017.
1. Sibanye Gold
) name fool you. The company owns Stillwater Mining, which produces platinum.
In June 2017, the company fired 1,500 workers who went out on strike. The stock price dropped dramatically, and began forming a new base. Investors will have to decide if this is a bargain. If platinum prices rise, this mine could respond with increased production and capitalize on the uptrend.
- Avg. Volume: 5,973,807
- Market Cap: $2.576 billion
- PE Ratio (TTM): 3.95
- EPS (TTM): 1.23
- Dividend & Yield: 0.42 (8.66%)
- 1y Target Est: 4.96