Overall, platinum is not a better investment than gold. Gold is more stable, is more easily extracted and its price doesn't fluctuate as much as platinum. And the value of gold is considerably greater than that of platinum. In the end, precious metals have their uses as investments, and a Self Directed Gold IRA is one of the most popular ways to invest in gold. When political or economic uncertainty hits, investors often turn to alternative or tangible assets to protect their portfolios.
Precious metals such as gold are just one option available to you. However, all investments come with their risks. Platinum has higher volatility than other options, making it more susceptible to price drops. Meanwhile, gold remains relatively stable, but it may not be a solid hedge against inflation in the short term.
Gold has long been popular as a financial asset and because of its aesthetic value. Platinum is another precious metal used in jewelry and also has industrial applications. Both can be good investment options, but there are differences in terms of long-term stability and price fluctuations. One of the main reasons why many think platinum is more valuable than gold is that the latter, most of the time, has a lower price.
Gold and platinum prices tend to be very close, but generally speaking, gold tends to be less expensive than platinum most of the time. Combine higher prices with the perception that platinum is much rarer than gold, and you'll get the impression that platinum is worth more than gold. In reality, platinum is not a better investment than gold. Gold is more stable and available for mining, and its price doesn't change like platinum.
Gold is worth much more than platinum. Because of its applicability to a greater number of industries, platinum is driven more by industrial supply and demand, and the price of platinum fluctuates more frequently than gold. So how do you explain the price of gold and platinum? To better understand how the prices of gold and platinum are determined, it is important to analyze supply and demand. New investors may wonder if platinum is a better investment than gold because of words like “the gold standard” and “a platinum record”.
That said, if the economy is on an upward trend and industrial and manufacturing industries are on the rise, then platinum can be a great short-term investment with immediate returns much higher than gold. Throughout history, there have been times when gold has been traded at a higher premium than platinum and vice versa. It is more difficult to manufacture because platinum is found lower in the ground and requires a more rigorous purification procedure than gold. While 24-carat gold, or gold with a fineness of three nines, is fairly soft and bends, pure platinum is tough enough to withstand the wear and tear of everyday use.
Occasionally, gold requires a premium over platinum, while platinum sometimes has a premium on gold. Therefore, it is a valuable short-term investment that usually generates higher immediate returns compared to gold. Many investors invest in gold to complement traditional stocks and bonds, since gold can be used to replace fiat currency in the event of an economic downturn. Take credit cards, for example; a platinum credit card usually has a higher limit than a gold card, meaning it has a higher status.
The combination of higher gold production and the fact that gold mining takes place for much longer results in less platinum than gold in the world above ground. Gold is primarily used as a way to store a person's wealth or savings, whether in the form of investment, jewelry, etc. The price differential between the two represents supply and demand and the economic problems that affect the two metals independently, including the importance of platinum in the automotive industry and the status of gold as a haven during economic downturns. Over a 32-year period, there were some historical cases in which the price of gold per ounce surpassed platinum.