In order to meet the operating costs of this website, we may receive compensation when you click links on our site. Understanding the nuances of these metals is crucial for investors, jewelers, and consumers to make informed decisions. As the market evolves, so will the dynamics between these two illustrious metals.
Potential Future Uses
The other two videos are carbon copies, except in one, the desert is a golden pink. Platinum pieces will also often have a serial number and an eagle hallmark. The eagle symbolizes the high purity levels mandated by platinum trade associations. As a pure metal, platinum has a density of 21.45 g/cm3 compared to 19.3 for gold. In the earth‘s crust, platinum is even scarcer, with an average concentration of just 0.005 parts per million compared to 0.004 parts per million for gold. Global economists predict that inflation will remain well above projected targets, which may entice more banks and investors to stockpile gold.
Platinum or Gold – Which is the Better Investment Now?
And as long as there’s a market for gold and platinum, their values will remain despite economic issues. Based on the platinum/gold ratio over the past 40 years, platinum currently appears cheap relative to gold. The current ratio of 2.61 (Monday, August 19, 2024) suggests that platinum is significantly undervalued compared to its historical norm. For investors seeking value, this could present an attractive opportunity to invest in a relatively rare and important metal. Though it’s also possible to purchase gold or platinum options, it’s a complicated and risky method that’s only recommended for experienced investors. If you’re interested in investing in gold coins, you need to make sure you determine the exact gold content to ensure you’re making an investment that is worth the asking price.
” While platinum has a much lower price-per-ounce (about $969.30 per ounce at the time of this update), this doesn’t necessarily make gold a better investment by default. We are a professional and independent site that aims at providing valuable information for people interested in retirement investing. You are encouraged to talk to your financial advisor before making any investment decision.
- It’s a safe haven asset that protects against economic uncertainty or inflationary pressures.
- The NYMEX, which itself is a part of the COMEX, offers platinum futures contracts.
- These examples demonstrate how gold and platinum continue to be highly sought-after commodities across multiple industries worldwide.
- In energy storage solutions, gold is being explored as an alternative material for lithium-ion batteries.
- In addition to gold, platinum also has potential energy applications.
It’s a safe haven asset that protects against economic uncertainty or inflationary pressures. Where platinum was once more expensive than gold, the situation has reversed in recent years. According to recent data, the gold/platinum ratio currently stands at 2.61 (Monday, August 19, 2024), meaning that gold is now more than two and a half times more expensive than platinum. This is a remarkable shift, especially considering that platinum was once consistently priced higher.
- 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).
- Your choice between gold and platinum will depend on your unique portfolio and the item you want to invest in.
- Gold has relatively few industrial applications and is mainly used as a store of value and for jewelry.
- Besides computing, gold and platinum are being researched in nanotechnology applications thanks to their unique properties at such small scales.
- As of March 2022, platinum traded around $1,100 per ounce compared to $1,950 for gold.
- While the globe shut down many non-essential businesses and many people received government funds to keep them afloat, gold and silver prices skyrocketed.
When the two are combined, they create stunning pieces that are also long-lasting. Whether you choose diamond or platinum, it will be the best option for your needs. Mining specialists predict that man has extracted only over 10,000 tonnes of platinum and that total mine production of platinum globally in 2021 will be around 180 metric tons. Ultrahuman’s “Rare” rings will be priced between £1,500 ($1,873) and £1,800 ($2,247), making them equivalent to buying a premium foldable phone.
These mines give North America greater supply independence for platinum compared to reliance on Russia and South Africa. Expanding domestic mining capacity could help improve platinum supply stability. As you can see, gold is produced at a rate nearly 17 times higher than platinum each year. Unlike gold, there are very few significant platinum deposits that have been discovered across the world. One simple way to buy silver is via 1-ounce coins like the American Silver Eagle on Red Rock Secured.
Industrial Demand
Moreover, storage costs and insurance are only 1% annually, and you can sell your platinum back to GoldRepublic at any time, ensuring your investment remains highly liquid. Gold is considered a safe-haven asset that can hedge against inflation and economic uncertainty. It can also diversify a portfolio beyond stocks and bonds, and is considered a „store of value” since its value tends to remain stable over time.
However, gold has had a greater long-term return compared to platinum. Approach gold and platinum investing with a long-term mindset and know your investment goals and risk tolerance. While historically, platinum has often been more expensive due to its rarity and industrial applications, current market trends show gold taking the lead in terms of price per ounce.
This was largely due to the scarcity of the metal which is costly gold or platinum and the strong demand from industries such as the automotive sector, where platinum is crucial for catalytic converters. In terms of abundance in the earth‘s crust, platinum is over 30 times more rare than gold. According to expert estimates, all the platinum ever mined could fit in an Olympic sized swimming pool, while the same amount of gold could fill about three pools. This makes platinum significantly more scarce, valuable and coveted. Read on for an in-depth examination of how these precious metals compare in rarity, price, investment outlook and uses.
Price differential
Gold’s intrinsic value lies in the currency and jewelry industries, and more people are likely to invest in gold than platinum solely due to its wider availability and affordability. However, the market for both precious metals changes daily, and it’s impossible to say which is more intrinsically valuable. However, its scarcity and the difficulty of selling platinum compared to gold make it the less popular precious metal. When considering an investment in platinum or gold, it’s important to look at current market prices and how they compare to historical prices.
Conversely, if platinum prices rise relative to gold, it may signal that the economy is in a growth phase. The platinum/gold ratio is considered an important economic indicator. Gold has relatively few industrial applications and is mainly used as a store of value and for jewelry. Platinum, on the other hand, has many practical applications, particularly in industries such as automotive, electronics, and medical sectors. Understanding the diverse aspects of platinum and gold in the jewelry market offers insights into why each metal holds a special place in the hearts of consumers.
