Platinum is heavily affected by changes in the automobile market, while changes in the semiconductor industry impact gold prices. Platinum is much rarer than gold and it has a greater utility as well. Platinum is a heavier metal and less resistant to chemical reactions compared to gold. For these reasons, it’s frequently used in medical devices like pacemakers and anti-cancer drugs like cisplatin. At GoldRepublic, you can exclusively purchase physical platinum, which is securely stored in a Swiss vault in Zurich. This not only protects your investment but also offers the potential to benefit from future value increases.

Some types of gold, such as 10 karat, can be made with more than 50% of metal content other than gold. Platinum is harder to mine than gold, and tends to be heavier and denser. The last major monetary disorder in 1980 saw all four primary precious metals reach new nominal record-high price points within months of one another. We believe now is a valuable time to point out platinum’s historic undervaluation versus gold prices ongoing. White gold and platinum are similar in appearance, but it is possible to differentiate between them, not least by their hallmarks. The most common platinum hallmarks (changing according to the metal’s grade, shown here in descending order) are the Emperor Penguin, Dog’s Head 1, Dog’s Head 2, Dog’s Head 3 and Dog’s Head.

In the summer of 2008, just before the financial crisis hit, platinum was still significantly more expensive than gold. The gold/platinum ratio stood at 0.5, meaning that gold was half the price of platinum at that time. However, with the ensuing crisis, the relationship changed drastically. Platinum, which is heavily reliant on industrial demand, became relatively cheaper compared to gold, which remained a safe haven for investors during times of economic uncertainty. Understanding why platinum is less expensive than gold can provide valuable context for investors considering this precious metal. Factors such as rarity, demand, and industrial uses play a significant role in pricing differences.

Jewelry Making

For example, gold nanoparticles can be used to deliver drugs directly into cells with greater precision than ever before, potentially leading to more effective treatments for cancer and other diseases. Gold has also been used in dental fillings due to its malleability and resistance to corrosion. Research and financial considerations may influence how brands are displayed. As you can see by the chart above, platinum was worth more than gold for the vast majority of the 20th Century. But given that we often have bullion sales on Platinum coins and Platinum bars.

What are some benefits of investing in gold?

Speculation plays an important role in the value of gold and platinum. When investors believe that the value of a metal will increase, they buy it, which drives up its price. On the other hand, when investors think that prices are too high or there’s an oversupply of a particular metal, they sell their assets, which usually drives prices down. Both metals are regularly used in various industries, from jewelry to electronics, but what about their future potential?

Why Buy Platinum Bullion?

It’s the bedrock for many resources, such as medical devices and solar panels. In energy storage solutions, gold is being explored as an alternative material for lithium-ion batteries. Its low reactivity makes it ideal for storing large amounts of energy without the risk of degradation or fire hazard. Gold can also be alloyed with other metals, such as copper or nickel, to create high-efficiency electrical contacts that can be used in solar panels or wind turbines.

When the ratio is low, an investor may decide that represents a good time to purchase platinum. Throughout history, investors have flocked to precious metals like gold and platinum during tough economic times and high inflation. These precious metals are tangible, have a fixed amount and can be used in various industries.

For white gold, the most common hallmarks are the seahorse, the eagle’s head surrounded by a bevelled rectangle, the eagle’s head and the trefoil. So when it comes to assessing rareness, platinum emerges as the obvious winner. Its rarity and distinct qualities help explain why platinum jewelry often signifies life‘s most precious moments. This insight into platinum‘s advantages can help buyers make informed decisions between these luxury metals. Per the IRS, a third-party custodian must manage your precious metals that are held in an IRA on your behalf. Your custodian can keep track of your basis and gains and report important paperwork to the IRS.

Different industries are working diligently to incorporate these precious metals’ benefits into their sectors. Gold tends to remain relatively stable even during times of economic or political uncertainty, while platinum is much more sensitive to market fluctuations due to its industrial uses. This means that gold may be a better choice for investors who want a steady return over time, while those looking for potentially higher returns may prefer investing in platinum. Its price has increased steadily since 1971, when it was first allowed to be traded freely on international markets. Platinum, however, is more volatile, and its prices can fluctuate significantly depending on supply and demand factors.

1. Indeed, White gold, also called gray gold, is composed of 75% of Gold, 10% of Silver and 15% of Palladium, which is a derivative of Platinum.
2. The total global reserve of platinum group metals is estimated to be around 70,000 tons.
3. Platinum is also used in jewelry with one hallmark – 950, which means the bar is worth 95% of its face value.
4. There have been about 208,000 metric tons of gold and only 6,000 metric tons of platinum mined in human history.
5. At present, no other smart rings on the market are crafted from precious metals.

For example, if tensions rise between two countries or regions with large gold reserves, traders may speculate that gold could become more valuable due to increased uncertainty in those areas. Similarly, if news reports suggest that certain economies are slowing down, traders may expect lower demand for platinum products like catalytic converters used in cars, reducing their investments. Precious metals, like gold and platinum, are considered one of the best ways to protect against inflation due to their security and tangibility. During times of economic crisis, when inflation hits, and the dollar’s value begins to decrease, investors tend to hold onto physical assets as their value either remains the same or increases. Understanding these investment perspectives is crucial for anyone considering adding precious metals to their portfolio. While both gold and platinum have their merits, they cater to different investment styles and objectives.

Automotive Parts Production

1. Platinum, for example, is used for catalytic converters — a car part that converts harmful toxins from the engine into less harmful substances to limit pollution into the air.
2. Platinum’s higher price compared to gold is driven by its rarity, concentrated supply sources, significant industrial demand, and complex production processes.
3. On the other hand, when investors think that prices are too high or there’s an oversupply of a particular metal, they sell their assets, which usually drives prices down.
4. Investors have plenty of options when it comes to where to put their money, from stocks to bonds to ETFs to commodities, like gold.
5. South Africa produced 140 metric tons of platinum in 2022, Russia produced 20 tons, while Canada and the United States produced a combined six metric tons of platinum in 2022.
6. 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.

Doing so can give you many of the tax benefits of a conventional retirement account, but you have to make sure you understand all the IRS rules that apply to a gold IRA. You can also buy and sell gold-backed investments outside of an IRA. Platinum, for example, is used for catalytic converters — a car part that converts harmful toxins from the engine into less harmful substances to limit pollution into the air.

The relative values of platinum and gold are not just a matter of rarity or physical properties but are deeply intertwined with global economic and political trends. Understanding these dynamics is crucial for anyone interested in the precious metals market, whether for investment purposes or general interest. The choice between gold and platinum will depend on each investor’s goals, risk tolerance and investment strategy. The precious metal can act as a diversifier and safe haven when the economy is turbulent. As mentioned, platinum has a wide variety of industrial uses and is also used in jewelry. It’s generally considered a safe-haven asset investment because it historically holds which is costly gold or platinum its value or even increases during economic uncertainty.

As we mentioned above, gold is also a liquid asset, making it relatively easy to buy and sell. This can make it a more accessible investment compared to other assets like real estate. Another benefit of gold is that it can add diversification to your portfolio. The ease with which you can buy gold or make a platinum investment depends on which method you use. One way is to purchase physical bullion — but that can also be time consuming and complex. You need to ensure you use a reputable dealer and arrange for secure storage.