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Gold Vs. Platinum Investment: Which One Is Better?

gold and platinum coins over a graph

According to economists, the US might be moving towards another recession in the years to come. If no preparation is done, you may have to deal with high inflation costs and depreciating currency which can cause multiple issues if you’re not prepared.

Are you looking for investment options to keep your money safe during these tough times? Investors believe buying precious metals acts as an inflation head. The two topmost precious metals people usually invest in include gold and platinum. Both can be good investment options, but the question is, which one should you pick? Here’s a guide that can help you make the investment decision easier.

Price Factor

Gold and platinum have had instances where one of them outperformed the other over the years. During the 1970s, gold was more valuable than platinum, while from 1987 to 2008, platinum was on top. After 2011, gold again achieved a higher value than the silver-grey metal. In June 2022, gold prices were recorded at $1,845 and platinum at $966 per ounce. 

The price difference between gold and silver is an inter-commodity spread, so both metals can trade at premium prices to other metals. Investors use the relationship between the two to decide on which option to invest in. They use the platinum/gold ratio to indicate which one is cheaper.

A pile of gold bullion bars

Trade and Liquidity

The trade of platinum and gold can be better understood by understanding their trading characteristics. Platinum is mostly used in manufacturing industries such as automobile, technology, pharmaceutical industry, and jewelry. It is more scarce than gold, which means that high platinum demand and low production lead to sudden peaks and falls in its price.

Gold is less volatile than platinum and also has a higher liquidity market. This is because multiple countries produce gold, unlike platinum found only in South Africa and Russia. Gold has a more stable price and doesn’t show erratic price drops.

Which One Is A Better Option?

If you’re trying to choose between the two, you must consider your investment goals. If you’re looking for a long-term investment, it’s safer invest in gold. It’s value has historically increased with the rising inflation. On the other hand, platinum investment should be made during a progressing economy in the short term as it’s price is prone to sudden highs and lows.

If you’re looking to buy platinum or gold from a reliable precious metal investment dealer, contact Orion Metal Exchange. We are a precious metals storage company that can offer secure vaults for precious metal storage. We can also set up a precious metal IRA account for you if you wish to save for retirement.

Contact us to learn more about our services.

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