Platinum vs Gold Investment: Which is Better?

Platinum vs Gold Investment: Which is Better?
Posted on April 11, 2024 by BOLD Precious Metals

Many sources and media are used to spread financial asset education identical regarding goods and precious metals like platinum and gold and investments in platinum vs. gold.

Your mother and grandmother must have told you about gold, silver, and platinum as jewelry and ornamentation, but how do you invest in these scarce metals?

This is the only resource you'll ever require to comprehend preparing platinum vs gold investments; learn everything there is to know about gold and invest in gold and platinum as well as platinum bullion.

Ultimately, we will separate the variations from comprehending which precious metal is superior for investing and why.

    Understanding Platinum and Gold

Real coin checking in feal market

1. Rarity and Availability:

  • Platinum bullion is less standard than gold bullion, making it harder to find and purchase.
  • Platinum bullion is available in various sizes, from one ounce to one kilogram, and is available for purchase from various precious metal dealers, coin shops, and online retailers.

2. Mining and Extraction:

  • For thousands of years, gold has been used as money. In times of economic instability, it has a long history of serving as a haven investment.
  • Gold is more widely available and can be mined in many countries worldwide, making it less vulnerable to supply disarrangements.
  • Gold is more commonly used in jewelry, which can make up a significant portion of its demand. This can make gold more stable than that platinum when it comes to platinum vs gold Investments.

3. Traditional Value

  • For thousands of years, gold has been used as money. In times of economic instability, it has a long history of serving as a haven investment.
  • Gold is more widely available and can be mined in many countries worldwide, making it less vulnerable to supply disarrangements.
  • Gold is more commonly used in jewelry, which can make up a significant portion of its demand. This can make gold more stable than that platinum when it comes to platinum vs gold Investments.

4. Storage

  • Platinum bullion can also be stored in a safe deposit box or with a professional storage company.
  • Some platinum bullion is minted with a face value, such as the Canadian Platinum Maple Leaf, which has a face value of 50 Canadian dollars.
  • Platinum bullion can also be purchased through ETFs or mining stocks as an alternative to physical bullion and is good diversification for a precious metal portfolio.

    Investing in Platinum

Compared to gold, the amount of platinum in the Earth's crust is relatively small, making it one of the rarer metals.

It is a ‘shy cousin’ of gold!

Investing in Platinum
  • One aspect contributing to its high value is its extreme rarity; it is almost thirty times rarer than gold.
  • Platinum offers an attractive value proposition, making it a useful asset across various industries.
  • With its high density and malleability, platinum finds extensive use in industrial applications, particularly in sectors such as medicine, automotive, and aerospace.
  • Platinum's price is primarily influenced by industrial demand and supply dynamics, leading to frequent price fluctuations and volatility.

For investors considering entry into the platinum market, several investment options exist, including physical investments in platinum coins or bullion, as well as "paper" investment vehicles such as mutual funds or exchange-traded funds (ETFs) backed by platinum bullion.

Although historically undervalued, platinum has gained recognition for its intrinsic value, particularly in industrial applications. However, one challenge with platinum is its comparatively limited liquidity, making buying and selling less straightforward.

Investing in physical platinum bullion will give you the flexibility to buy, sell, and trade this globally recognized asset according to market conditions and personal investment strategies.

    Investing in Gold

Throughout history, from ancient civilizations to the American Gold Standard and modern US coinage, gold has always maintained a significant value.

Investing in Gold

Although gold was once the foundation of monetary systems, its value now varies according to supply and demand.

Similar to platinum, gold finds application in the aerospace, dental, and electronics industries. However, these uses have less of an impact on gold's price. The investment and jewelry industries are the maingo consumers of gold.

During economic downturns, investors frequently lean to gold to diversify their portfolios, causing prices to climb due to investor sentiment.

Investing in gold, like platinum, involves purchasing real gold, such as collector coins or bullion, from dealers, coin sellers, precious metal merchants, and, in some cases, banks. As an alternative, investors can pick non-physical products such as mutual funds, equities, or exchange-traded funds (ETFs) that imitate the performance of gold.

    Comparative Analysis: Platinum vs Gold Investment

Liquidity and Market Accessibility

1. Liquidity and Market Accessibility

When discussing platinum vs. gold investment, it comes as no surprise that both metals are excellent for trading against cash.

However, gold is typically more liquid due to its higher trading volume worldwide. According to experts, platinum is considered more niche than gold. This is because platinum is traded in smaller volumes, which makes it more speculative.

Gold shines out in terms of accessibility, with simple buying and selling methods and narrow bid-ask spreads. Conversely, platinum has comparatively lower accessibility than gold and has greater bid-ask spreads. It provides a decent level of accessibility.

2. Investment Volatility and Return Potential

Investment Volatility and Return Potential

Gold is usually seen as a safer bet for stability over the long term. It has a strong history of being in demand, especially when there's an economic crisis. In contrast, platinum tends to perform better when the economy is growing. This is because industries like manufacturing use more platinum, which drives up its price.

So, if you're looking for quicker returns, platinum might be a good choice. But remember, platinum's value can fluctuate greatly, so it's riskier. If you prefer steadiness, go with gold.

Price Differential

3. Price Differential

Platinum has experienced a substantial decline in price compared to gold in recent years. As of April 4, 2024, the current price of platinum is around $950 per troy ounce, which is less than half the price of gold, which is currently priced at $2310 per troy ounce.

Some experts think platinum might be undervalued compared to gold based on its past prices. But right now, gold is in high demand because people worry about the economy, while platinum's use in industry has gone down, especially in the automotive industry.

4. Industrial Uses

Industrial Uses

Due to its unique properties, about 11% of all gold mined is used in a variety of industries. These include medical, electronics, automotive, defense, and aerospace use of gold. In many industrial processes, it is also being used extensively as a catalyst.

On the other hand, in the chemical sector, platinum acts as a catalyst to help produce benzene, silicone, and nitric acid. It also improves the catalyst efficiency of fuel cells. Platinum is also a valuable asset in the electronics industry because of its use in thermocouples and computer hard drives.


5. Applications

Platinum extends its use cases for a vast range of applications in manufacturing optical fibers, LCDs, turbine blades, spark plugs, pacemakers, and dental fillings.

Gold, on the other hand, can be hammered into extremely thin sheets known as gold leaf, commonly used in art, decoration, and architectural ornamentation. Additionally, gold can be used in electroplating to coat another metal with a thin layer of gold.

    Investment characteristics of Platinum and Gold

Investment characteristics of Platinum and Gold

In the debate of platinum vs gold investment, gold and platinum generally exhibit similar long-term trends, although their prices can differ due to factors unique to each metal.


Factors that influence the platinum price industrial demand, especially for anti-pollution equipment in vehicle engines, jewelry, and medical supplies. Mines in South Africa and Russia significantly impact platinum prices due to their substantial production.

Platinum's dependence on industrial demand and mine production makes its price highly volatile, with fluctuations being the most significant among precious metals.

For instance, platinum peaked at $2,250 per ounce in 2008 but dropped to $777 within six months.


In contrast, gold is known for its stability and reliability.

Multiple gold-producing countries, including China, Australia, India, the U.S., and Canada, contribute to global supply, reducing the impact of supply issues in one nation on pricing worldwide.

Gold is often considered a safe-haven asset during crises, such as the 2008 financial crisis. As investors sought financial protection, its prices doubled. From 2008 to 2011, gold prices surged from $869.75 per ounce to a whopping $1,895!

Investors often turn to gold in times of catastrophe, seeking financial protection, as its value tends to appreciate during such periods. Additionally, it comes as no surprise that gold acts as an excellent hedge against currency inflation, making it a more reliable investment alternative.

    Platinum vs Gold Investment - Pros and Cons

Platinum vs Gold Investment - Pros and Cons

Gold and platinum both appreciate over time, but because platinum is more susceptible to changes in the economy and in industrial demand, it is occasionally more volatile.

On the other hand, gold has well-established, regulated markets along with higher liquidity and stability. Gold offers a broader selection of investment options compared to the limited variety of platinum investment products available.

Let’s have a closer look at platinum vs gold investment in terms of pros and cons:

Pros of Platinum:

  • Due to its lower nominal price per ounce, platinum may be more affordable for regular investors than gold.
  • Industrial applications like catalytic converters may drive demand.

Cons of Platinum:

  • Price volatility is higher owing to economic cycles.
  • Limited trading and regulation cause higher bid-ask spreads and accessibility issues for investors.

Pros of Gold:

  • Stability as a safe-haven asset that keeps its value despite drops in the stock market and downturns in the economy.
  • Established cultural appeal and historical resilience over centuries.

Cons of Gold:

  • Potential overvaluation after a decade-long bull run.
  • No dividend yields; value is based only on price growth.

Investors can evaluate which metal best suits their risk tolerance and portfolio strategy by looking at price trends, market conditions, and past performance.

    Platinum vs Gold Investment Analysis:

Industrial UseHighModerate
Over/Under ValuationLowModerate
Dividend YieldNoneNone

    Platinum vs Gold – Which is the best precious metal?

When it comes to platinum vs Gold investments, there are several factors to consider when determining which metal is the best choice. Here are five reasons why platinum may be a better investment than Gold:

  • Rarity: Platinum is rarer than Gold. This rarity can drive up the pricing of platinum, making it more valuable than Gold in some cases.
  • Industrial demand: Platinum is used as catalytic converters in cars and medical equipment. This can make platinum demand more stable than Gold, which is primarily used for jewelry.
  • Potential for higher returns: Platinum is typically more expensive than Gold, but it also has possibilities for higher returns. In the long term, platinum prices have tended to be more volatile than Gold, with more significant highs and lows.
  • Diversification: Investing in platinum diversifies a precious metal portfolio, as it has different demand and supply drivers than Gold.
  • Hedging against inflation: Platinum is regarded as an effective inflation hedge, which implies that it can help preserve an investor's purchasing power in difficult economic times.


Platinum is a much rarer and more valuable metal with multiple aspects of significance, but it is more expensive and vulnerable to supply disruptions. Gold is a traditional unit of measurement that is more widely available and used in jewelry, making it less volatile and

more liquid and a key factor about Gold. Both have the potential for returns upwards, but it's essential to consider your financial situation and appetite for risk before considering Platinum vs Gold Investments.

Related Blogs



Germani mintPress BurgGolden State MintscottsdalemintPerth mint Auscoin-dealers

Copyright BOLD Precious Metals 2024