Is Platinum a Good Investment?

by Francis Alukkas | 23 September 2021 | PLATINUM

When it comes to investment in precious metals, investing in yellow gold is the most popular and common investment that is advised. Although gold investment is one of the top profiting and beneficial investments with good returns and profits, investing in other metal forms such as silver and platinum that attract equal attention from the investors. How? Let’s check out the reasons.

Following this blog, we will be comparing both platinum vs gold investment and find out reasons on why one is considered over the other and is platinum a good investment?

Is Platinum a Good Investment?

Often we see people asking Is Platinum a Good Investment? Which is better platinum vs gold investment? What is the difference in platinum vs gold price? What is the rate of platinum as per the current platinum price chart? To answer all your questions and clarify your doubts on is platinum a good investment, we have conducted research to understand how the platinum vs gold price fluctuates and find out which is the best between platinum vs gold investment types. Before we understand the values of investments in the precious metals, let’s first understand the different uses and the factors affecting the platinum vs gold price.

Platinum vs Gold: Materialistic Uses

Just as every two objects have their own unique characteristics and properties, both platinum and gold have their own unique qualities that make them precious and valuable. While gold metal has more demand in jewelry making and is also used for applications in dentistry, electronics, and aerospace industries, platinum has a much wider application in the automobile and petroleum industry. They are heavily used in turbine engines, computers, medical devices and in the making of catalytic converters for cars, trucks and buses to reduce emissions. Platinums are also invested in fine jewelry making and are the love for people who are not much interested in the shine of the yellow metal.

Platinum vs Gold Price

There are several factors that affect the value of precious metals. While the value of gold increases during an economic crisis, the value of platinum decreases due to the economical and political conditions. Over a decade before, platinum brought a new wave of trends where people were more fond of the white metal, thus increasing the value. Platinums were priced more than gold. Although platinum is in demand and likeable metal preferred for wedding bands, they are not much popular in India. Value of platinum when considered to the yellow metal, gold today, is less and the reason behind the same is because of the economical conditions, with the pandemic adding to the global economic crisis. Also, Read:Gold Price 2021

Platinum vs Gold investment

For centuries, platinum is considered to be the higher symbol of value and quality, because of their rarity and difficulty in mining. Unlike the yellow metal that is produced around the world in dozens, platinum is available and mined only in two countries; South Africa and Russia. As an investment, unlike gold which has been used since ancient times in the form of currency or asset, platinum is more recent. As mentioned above gold prices shoot up during economic crises when investors buy more gold, platinum prices decrease during the same as the demand for supply for vehicles, and heavy machinery declines. But the reverse of the same is possible when the economy flourishes. However, no matter the market conditions, investing in both gold and platinum are more or less the same. Both the metals can be encashed from a trustable jeweller at the rates as of today. Also, Read: Guide on How Gold Ornaments Price is Determined

Is Platinum a Good Investment? Pros and Cons

Although liquidity of both the metals is easy, there are pros and cons for the both. As the value of Platinum high depends on the demand and supply chain, they are relatively less volatile. On the other hand, rates of platinum soared humongously when the South African mines faced power delivery problems, at the same when it decreased drastically due to turbulence in the automobile industry. This fluctuating nature in the platinum prices makes it less preferable as an investment when compared to gold.

Reading this blog, what are your thoughts on Is Platinum a Good Investment?


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