Platinum is a special metal with unique properties, and a sister metal to gold and silver. Unlike gold or silver, platinum’s history of being used as money is limited to a short period of Russian rubles.
Widespread knowledge of the white metal, as platinum is also known, stretches back only a few hundred years. Despite evidence of native South Americans skillfully working with platinum more than 1,000 years ago, Spanish Conquistadors considered it a nuisance because it interfered with their gold mining activities. It was not until 1751 that platinum was categorized as a precious metal.
Early Use
Platinum’s discovery in the gold fields of Russia’s Ural Mountains in 1822 eventually resulted in the government’s decision to use it in the country’s currency. Over the next 18 years, the Russian government minted almost 500,000 oz. of platinum, and perhaps more importantly, introduced the notion that platinum, like gold, could be a store of value. Platinum supply remains limited, with the majority of production occurring in South Africa and Russia.
Modern Use
In November 1983, The Isle of Man, a British Crown Possession, issued the 1-oz. Noble platinum bullion coin. Its commercial success encouraged other mints to follow suit. Australia (the Koala) and Canada (the Maple Leaf) introduced platinum legal tender bullion coins in 1988, within three months of each other. Despite the proximity of the launches, both were enormously successful, bringing the level of investment demand to new highs. For nearly 10 years, the Koala and the Maple Leaf were among the leaders in platinum coin annual sales. American Eagle platinum coins were released in 1997.