Gold vs Platinum: Which is the Better Investment?

If you should decide to keep your precious metals at home, make sure you have adequate coverage in your homeowners insurance, and keep your precious metals in a secure location. Historically, platinum has been more expensive than gold, but beginning in 2011, gold’s price started to surpass platinum’s. As of this writing in mid-May 2023, gold is trading at around $2000 per ounce while platinum is trading at closer to $1070, according to CME Group. The price of platinum and the price of gold have varied widely at different points in time. The NYMEX, which itself is a part of the COMEX, offers platinum futures contracts. However, the overall liquidity and volume of platinum futures are lower than the volume and liquidity of gold and silver futures.

They are both non-toxic yet durable enough for long-term use, making them ideal materials for creating microscopic machines or sensors that could revolutionize fields like robotics or biomedicine. Finally, gold and platinum are being investigated for their possible role in quantum computing technology. Gold can be found in various purities, including 14k, 18k, 21k, and 24k. The higher karat numbers indicate the purity content in each type, with 14k having 58% purity, 18k having 75%, 21k having 87% purity, and 24k (the highest) consisting entirely of 99% pure gold. This makes 24k a valuable investment option since there are no impurities present that could alter its color over time. One option when investing in gold is to buy via a gold IRA, which can help you defer taxes on your investment gains until you withdraw the money in retirement.

CES 2025 is officially underway, and the adrenaline of a day of running around Las Vegas is fading fast. Probably because I’ve been replaying the same three which is costly gold or platinum product teaser videos over and over and over. One opens with the familiar frenetic strains of Vivaldi’s Four Seasons violin concerto, panning to a CGI desert, where grains of sand blow in undulating wisps. For someone seeking a high-end piece that will retain value, I would likely recommend platinum. But the choice often comes down to personal preference on color, budget and style. Gold has been used for centuries as a healing agent, but its use in modern medicine is only just beginning to be explored.

Limited Supply

Both gold and platinum have benefits and drawbacks, and your choice depends on your overall goals, risk tolerance and how much capital you wish to invest in precious metals. While platinum and gold prices often move together, the gold price has historically been higher and more stable than the platinum spot price. It is determined by dividing the spot price of gold by the spot price of platinum. Some investors use this ratio to assess whether a metal is over or undervalued.

Demand for platinum has grown over the years as it’s industrial and automotive uses have grown. Platinum has long been used in the automotive industry, and the advent of electric vehicles resulted in greater demand. In the automotive field, platinum is used for spark plugs and catalytic converters, but it is also used in the glass industry. As a result of the limited number of locations platinum is mined, geopolitical events can have a sizeable impact on the price of platinum.

How much platinum has been mined?

The debate between platinum and gold has long fascinated investors, jewelers, and consumers alike. These precious metals have been symbols of wealth and status throughout history, each possessing unique qualities that set them apart. While platinum has been less expensive in recent years, and the market is more volatile, precious metal experts believe it has the potential to yield higher returns in the long run.

1. For investors, this could mean that platinum is currently undervalued compared to gold.
2. Based on annual global production, platinum is around 190,000 kgs versus 3,200,000 kgs of gold.
3. In 2014, five months of minng strikes in South Africa resulted in a 10% rise in the platinum price.
4. After reviewing all the data and research, the verdict is clear – platinum is significantly rarer than gold.
5. In the automotive field, platinum is used for spark plugs and catalytic converters, but it is also used in the glass industry.

Platinum‘s Extreme Rarity Drives Its Value

Government policy changes like this can have significant effects on the market. As you can see, the spot prices of platinum and gold have fluctuated dramatically over the years. In 2008, platinum dramatically peaked and dropped in value while gold continued to climb gradually. From 2022 through 2024, platinum was largely stable at around $1,000 at spot. Comparatively, gold went from $1,500 to $2,500 during the same period.

1. There are several key differences between investing in gold and investing in platinum.
2. One simple way to buy silver is via 1-ounce coins like the American Silver Eagle on Red Rock Secured.
3. But besides their history, precious metals investing comes with other benefits that include retaining their value, being a low-maintenance asset, and adding a layer of financial security.
4. Historically, when the economy recovers and demand for industrial metals increases, platinum could rise in value, making it an attractive long-term investment.
5. Whether you choose diamond or platinum, it will be the best option for your needs.
6. Gold has no yield and doesn’t pay dividends, unlike financial assets like stocks and bonds.
7. Besides gold and platinum, here are two other precious metals that could be worth investing in.

Platinum is a rare, naturally white metal comprised of 95% pure platinum and 5% additional alloys. This precious metal is highly valued in the fine jewelry world due to its hypoallergenic properties, making it one of the safest metals for people with sensitive skin. When the price of platinum lags behind that of gold, as we have seen since the 2008 crisis, it can indicate economic uncertainty or a downturn in industrial production.

For instance, the 2008 Zimbabwe land reforms resulted in a decline of platinum production and caused a 25% spike in the price of platinum. In 2014, five months of minng strikes in South Africa resulted in a 10% rise in the platinum price. The value of gold in terms of current fiat US dollars versus platinum prices is now at 125-year highs. However, platinum isn’t mined as much as gold due to the complex extraction process. This makes platinum rarer and more difficult to obtain, increasing its value and price. It can also create fluctuations in the market depending on the geopolitical climate where platinum is found, such as South Africa, Canada, and Russia.

Platinum tends to be more volatile than gold, owing to its smaller market share and lower trade volume. While gold may experience smaller price swings, the popular precious metal can certainly still be volatile in the short term. Financial advisors tend to recommend focusing on long-term investing that aligns with your goals and timeline, since that will mitigate concerns you need to have about short-term price fluctuations. The spot prices of metals like silver and gold are influenced by the Chicago Mercantile Exchange (COMEX). Conversely, the price of platinum is more greatly influenced by the London Platinum and Palladium Market (LPPM), and New York Mercantile Exchange (NYMEX). In times of financial stress and monetary turmoil (e.g., 1980), platinum tends to behave more like gold and other precious metals with widespread hoarding.