Gold vs. Platinum: Which Investment is Better?
Gold and platinum are precious metals that are attractive for investors looking for a stable investment. However, when choosing between the two, the answer isn’t as simple as one might assume.
Both precious metals have unique qualities that qualify them as suitable investments. Here is how we can evaluate these precious metals from an investor’s perspective:
When it comes to sourcing these precious metals, platinum is more difficult to mine. It is buried deeper into the ground, and 80% of its production comes from two countries, Russia and South Africa.
Gold is not limited geographically and is mined worldwide. Precious metals also need to be purified after they’re mined, which is more complex for platinum than it is for gold.
This makes platinum rarer to source and makes its supply quite risky as any tensions in Russia, or South Africa can negatively impact it.
Gold is heavily invested in during economic crises as it acts as an inflation hedge.
Prices of gold often rise during financial difficulties as they have during the coronavirus pandemic across the globe. Platinum’s prices are more reliant on its supply and demand.
As platinum is used across various sectors, its demand is dependent on the conditions endured by these sectors. Its supply is also limited; all these factors, not economic uncertainty, affect its prices.
Both gold and platinum are used across for many different purposes across different industries.
Both are used in jewelry. Platinum, however, is also used in the automobile sector, which is multiplying to produce catalytic converters.
If electric vehicles gain more acceptance, then catalytic converters will diminish as well as the use of platinum.
When it comes to choosing between investing in gold or platinum, it all depends on your speculation of external events happening worldwide.
The kind of security you are looking to gain from your investment, such as safeguarding against economic uncertainty, will make gold a more suitable choice than platinum for you.
If you’re looking for growth potential in your investment, than platinum stands out.
Our experts can also guide you on the best way to invest in gold that is most right for you! We can also help you buy silver and gold bullions online.