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When you want to get the most out of your long-term investments, owning precious metals like gold and silver is a great solution. However, more people are looking toward platinum products as an alternative way to enhance their portfolios.
Unlike fiat currency, platinum shows resilience during an economic downturn. The following article explains why this precious metal is so attractive to many investors and what you can do to obtain it.
What Affects the Price of Platinum?
Because many modern industries depend on platinum as an essential ingredient in their products, numerous factors influence its value.
The first factor to consider is the available supply of this precious metal. Most of the world’s platinum supply comes from South African mines. However, political developments and worker strikes often put the stockpile at risk.
Depending on the results of these conflicts, the price of platinum can fluctuate.
Second, platinum is a crucial asset to the auto industry. Engineers use platinum as catalytic converters during the manufacturing process. As global markets like China continue to invest heavily in new cars, platinum’s price fluctuates.
Platinum also serves as a durable industrial metal in other applications. New technology uses platinum to reinforce medical equipment, like pacemakers. Engineers also use this metal to reduce the output of harmful gases from diesel engines.
Platinum jewelry has become increasingly popular in the last few years. The World Platinum Investment Council (WPIC) noticed a steep rise in the demand for this product in the Indian and Chinese markets. As a result, the WPIC expects platinum’s jewelry demand to grow to 14% in the coming years.
Jewelry that contains platinum loses very little of its quality over time. Products like white gold jewelry may lose some of its metal when damaged. However, those who invest in jewelry with platinum can simply polish the surface without tarnishing the metal.
The Platinum Investment Industry
Some people buy platinum for its beauty, while others invest in its many industrial applications. A relatively new platinum market emerged in the last few decades, attracting many new investors.
Platinum coins and bars are more popular than ever among the precious metals community. Most well-informed investors understand that this product could be essential to their portfolios.
Like yellow gold and palladium, this alternative precious metal hedges well against inflation and economic crisis. Financial forecasts indicate that the price of platinum could continue to rise as the high demand outweighs the supply.
What Affects the Price of Gold?
Some people view gold as the ultimate profitable investment. For centuries, gold served as many nations’ currencies and was a status symbol among the affluent.
In most places, gold demand indicates how well an economy performs. For example, many thriving economies tend to spend more money on gold jewelry.
The gold standard also protects investors against currency depreciation and volatile markets.
Why Is Platinum Cheaper if It Is Much Harder To Find?
Platinum prices can be much cheaper than those of other precious metals. However, this ratio can change rather quickly.
Less platinum equals higher prices, and more platinum equals lower prices. Platinum is a rare metal that miners must work tirelessly to extract from the earth’s crust.
Workers remove about 200 metric tons of platinum a year from the earth’s surface, compared to the nearly 3,000 metric tons of gold.
Despite these numbers, platinum’s supply is relatively high at the time of this writing. Many companies are only now waking up to its potential industrial uses. Until the industrial demand for platinum outweighs production, it could remain less expensive than gold.
Still, rising global markets may encourage manufacturers to start producing more items like catalytic converters and surgical tools. As a result, the value of platinum could skyrocket overnight.
Platinum vs. Gold: Which Is More Valuable?
Gold is your safest bet when you want to invest in precious metals that retain much of their historic value. Many people believe that gold’s stability makes it a good investment. Nevertheless, analysts consider platinum to be more valuable than gold.
In a stable market, platinum can overtake the price of gold. However, as previously mentioned, platinum and gold values depend heavily on major producers’ output.
Platinum Price Trends Compared to Other Precious Metals (2020–2022)
How do other metals stack up against the price of platinum and gold? The price differences between these commodities tend to follow similar trends: As one metal becomes more expensive, others follow suit.
However, these trends indicate that some metals rise and fall more dramatically than others.
Since the second quarter of 2020, silver has been more expensive than gold and platinum. This phenomenon may be due to the effects of COVID-19. Many investors began buying up this product as the stock market dropped significantly.
However, since March 2022, silver prices have continued to return to pre-2020 levels.
Palladium is also more valuable than gold and platinum. It briefly fell below the price of gold in November of 2021 but continues to trend back up.
Palladium is a high-demand precious metal in low supply. We can conclude that its rarity contributes to this price difference.
Is Buying Platinum Worth It Right Now?
Just like when dealing with traditional stocks, it’s wise to buy low and sell high. Platinum is currently at one of its lowest prices since 2020. Some may consider purchasing these items now before platinum demand increases.
Still, every investor’s situation is different. Partnering with a financial advisor is the best way to get the most out of your portfolio. They can help you assess platinum prices and determine whether this investment suits you.
Gold Rings, Alloys, and Other Commodities: Are They Worth Anything?
Gold rings, bullions, and bars are some of the most attractive commodities for investors worldwide. Some of the most recognizable alloys include white gold, yellow gold, and rose gold. Still, you may wonder whether it is worth investing in any of these items.
For example, platinum and white gold are different in many ways. How can you be sure your money is going toward the right investment? Let’s take a look at each of these products more closely.
Platinum and White Gold
White gold contains around 75% pure gold. Jewelry manufacturers use this metal regularly in their products. Its naturally white surface distinguishes it from other gold alloys that contain yellowish metal.
For some, it may be challenging to differentiate between platinum and white gold. For example, gold and platinum contain silver-colored metal that is ductile and malleable. However, buyers may notice some key differences between the two.
Unlike platinum, white gold is difficult to dent or scratch. Its durable white metal surface contains trace amounts of silver, copper, and palladium.
Additionally, wearing a platinum ring may be safer than wearing a white gold ring. White gold sometimes contains nickel, which can cause allergic reactions for some.
Platinum and Yellow Gold
Yellow gold is another alloy that contains metals like copper and zinc. Customers will notice few differences between this product and white gold. However, people sometimes mistake this yellow metal for having a higher purity.
Both alloys have approximately the same market value. Choosing between these two options boils down to personal preference.
Investing in either option may be practical if you can afford it. However, platinum continues to outclass in terms of quality and value.
Platinum vs. Gold: Finding the Right Precious Metal for Your Portfolio
Platinum and gold are two metals that yield significant advantages for investors. Platinum prices may offer higher long-term rewards for those who hold on to their products. However, gold appears to be a better investment for those seeking stability.
At Oxford Gold Group, we help educate investors on the value of gold, platinum, and other precious metals. Browse our website for approved gold and platinum products.
Our accessible, one-stop shop allows you to explore dozens of platinum options from the comfort of your home.
Contact Oxford Gold Group in Beverly Hills, CA, to learn about platinum. Call 855-265-8037.
Why is platinum cheaper than gold now? ›
Platinum differs from gold in that it has a much larger range of industrial uses, meaning its value fluctuates in a way that resembles an industrial metal much more closely than it does a precious one.Why is platinum cheap now? ›
The Supply of Platinum is Down
If we look at how much platinum was mined over the last 11 years, we can see that the supply of platinum is decreasing. In recent years, only 180 metric tons of platinum were mined, that's nearly a 10% drop in mining production compared to the peak (over the last 11 years).
Platinum lasts longer and can require less upkeep than gold. It's pure, hypoallergenic, and a classic option. However, gold is more malleable, scratch-resistant, and affordable. Gold also comes in several color options whereas platinum is always silver-white colored.Is it better to buy platinum or gold? ›
Some investors may want to prioritize stability and long-term investing. In that case, gold is likely the better option. The precious metal has a longstanding history of reliable demand which often spikes during economic downturns. On the other hand, platinum usually performs better during times of economic growth.Is it worth it to buy platinum? ›
If you still feel like pampering your loved one or even yourself with a platinum band or a formal jewellery, you can still go ahead. It costs as much as gold. But remember this is just a purchase which may attain some investment value in future.Is platinum more prestigious than gold? ›
Platinum is typically considered to be more prestigious and is more expensive then gold because of its rarity. Platinum is not, however, a superior choice to white gold for making quality jewelry.What are the cons of platinum? ›
The downside of Platinum is that it tends to lose its high polish and sharp edges fairly quickly. This is not because they are being worn away but, more accurately, they are being moulded like clay around the surface of the ring.Will we run out of platinum? ›
Likewise, if demand continues for , some say it will be gone in about 10 years; platinum in 15 years; and silver in 20 years. Looking farther into the future, other sources claim that things like aluminum might run dry in about 80 years.What is the cheapest precious metal? ›
The best precious metal for your lifestyle would be silver. Since it remains an inexpensive metal, you can buy as much as you like without having to budget. Silver goes great with any precious stone. It also matches any outfit or color.What is so special about platinum? ›
It is extremely resistant to tarnishing and corrosion (which makes it known as a “noble metal”) and is very soft and malleable, making it easy to shape. It is also ductile, making it easy to stretch into wire, and unreactive, which means it doesn't oxidize and is unaffected by common acids.
What are the benefits of platinum? ›
ADVANTAGES OF PLATINUM
Platinum is extremely durable and strong making it ideal for jewellery that's worn on a daily basis. It's highly resistant to stress and withstands both extreme heat and extreme cold, which means platinum jewellery will retain its good looks better than any other metal.
Platinum (Pt) is the rarest & the most precious of the 3. Platinum (Pt 950) is currently around 50% more expensive than Gold. It is naturally white & resistant to tarnish.Is it hard to sell platinum? ›
Platinum Tends to Have a Poor Resale Value
The main reason is because a relatively small number of people are willing to buy it. This doesn't mean you can't find a reputable buyer, but you'll need to do some searching as you explore your options.
A long-standing favorite of precious metals investors, gold has been used as a store of value for thousands of years. Gold is known as an investment that tends to hold its value well during economic slowdowns, and which can ride out major recessions quite well.Does platinum have a future? ›
Platinum Forecast 2022
Simply put, the prices of platinum are expected to rise, especially when compared to last year's market prices. In Q1, we've already seen increases due to the rise in demand.
Platinum can be sold by the ounce or by the gram. The price fluctuates daily depending on the current market for the metal, just as it does for gold, silver, diamonds.Who should wear platinum? ›
It can be worn by anyone and with anything – so you will not have to worry about it when choosing a piece. – Lifelong Elegance – As already mentioned, platinum is for a lifetime. You may choose it for engagement rings, wedding rings, cocktail rings or everyday fashion rings.Is it worth upgrading Amex Gold to platinum? ›
Amex Platinum ultimately offers more value, though. For example, its benefits include airport lounge access, while the Amex Gold Card's perks do not. When it comes to ongoing rewards on purchases, Amex Platinum has a higher maximum earning rate and better travel rewards. But Amex Gold provides more everyday value.What is the rarest metal? ›
The rarest stable metal on Earth is Tantalum (Ta). Named after Tantalus, a wicked Greek mythological figure who was the son of Zeus, tantalum is an incredibly tough, heavy and hard metal that's blue-grey in colour and the rarest stable element found in our solar system.Which is most valuable than platinum? ›
Palladium was the most expensive of the four major precious metals - gold, silver, platinum and palladium. It is scarcer than platinum, and is being used in great quantities for catalytic converters in cars.
What can damage platinum? ›
Believe it or not, the chemicals present in everyday products like cleaning supplies, perfumes, hairsprays, etc. can be quite harsh. They can weaken the structure of your precious metal over a period of time. Also, the chlorine present in swimming pools can ruin the platinum's shine and cause discoloration.How long will platinum last? ›
Platinum is more rare than gold and will last a lifetime, resisting chipping and tarnishing.Why is platinum not used in jewelry? ›
Platinum is very soft, around 4-5 in the Mohs scale of hardness (only slightly harder than gold). Using it in its purest form, it isn't malleable and will get scratched easily, thus not ideal for jewelry.Is platinum more cheaper than gold? ›
Platinum (Pt) is the rarest & the most precious of the 3. Platinum (Pt 950) is currently around 50% more expensive than Gold. It is naturally white & resistant to tarnish.When did gold cost more than platinum? ›
It was not until the global financial crisis of 2008 that gold prices began to overtake platinum prices in terms of overall, now fully fiat US dollar valuations (Post-1971).What affects the price of platinum? ›
The price of platinum changes along with its supply and demand; during periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold; whereas, during periods of economic uncertainty, the price of platinum tends to decrease because of reduced demand, falling ...