Gold vs. Platinum; Which is a Better Investment?
Gold is the most popular precious metal in the entire world. Investing in gold has long been considered a status symbol. While gold tops the list for precious metal investment, other precious metals are also handy to diversify a portfolio. They may even sell at a higher rate than the bright yellow precious metal. One of these precious metals is a relatively newer entry called platinum.
Let’s look at the characteristics and market performance of the two precious metals to determine which is the better one to own.
Gold is the top priority for investors looking to diversify their portfolios by investing in precious metals. It’s one of the most trusted commodities to protect a portfolio during economic uncertainties. The precious metal retains its price even in the toughest economical ecosystems. An example can be related to the recent economic catastrophe caused by the pandemic.
While the world economy crashed, gold seemed to soar, recording an overwhelming increase of 430 US dollars in 2020. Its ability to withstand inflation is also one of the biggest reasons investors turn towards this investment.
Gold can be invested in through gold bullion bars and coins as physical asset form. Other kinds of investments may include gold ETFs, gold mutual funds, gold futures, and ownership certificates.
Though it’s existed for centuries, it’s still considered a new investment tool. Platinum is rare in quantity which is one of the prime factors that drive up its market prices. Platinum has a high industrial use with a low supply rate which keeps its prices volatile. The volatility can take its prices higher than gold and often way lower.
Platinum is mainly used in automobile industries to manufacture various eco-friendly automobile components. People can invest in platinum bullion bars or ownership certificates.
Gold vs. platinum – which is better?
Due to rigorous mining routines, platinum has a lower production rate than gold, making it a rarer precious metal out of the two. Only about 190 tons of platinum is extracted each year compared to the 2500–3000 tons of extraction for gold annually.
The price of platinum fluctuates erratically in the trading market, while gold rarely ever sees a decline. While risk takers might suggest that platinum is a better investment option for quick profits, gold’s market stability and liquidity give it a better overall value.
Gold is a highly liquid asset. This means that the precious metal asset can be bought or sold per the owner’s requirement without affecting its market price. Also, gold is readily available in bullion bars and coins, making it easier to trade.
Not many minting companies make platinum bars, so owners have to make arrangements to acquire platinum in its solid form.
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