Why Platinum Might Be a Better Investment Than Gold

Despite being 30 times rarer than gold and having more industrial and technological uses, platinum is less than half the price of gold. Platinum has reached an all-time high of $2,300 per ounce. Currently, platinum is trading at approximately $1,000 per ounce. Gold has reached a high of $2,460 per ounce. Currently, gold is trading at approximately $2,400 per ounce. Based on past performance, platinum appears to offer more value than gold. If you’re looking to buy low and sell high, platinum may be a better investment than gold.

The Supply and Demand Fundamentals of Platinum vs Gold 

From automobile engines to airplane parts and heavy machinery, platinum is utilized in manufacturing due to its strength and heat-resistant properties. For comparison, Gold has a melting point of 1,064°C, and platinum has a melting point of 1,768°C. Unlike gold, we are constantly depleting our global supply of platinum. This means, if the global production of gold and platinum were to stop today, it would take 250 years to deplete the above-ground gold reserves and 6 months to deplete the above-ground platinum reserves. According to the World Platinum Investment Council, due to continued platinum supply deficits, above-ground reserves will shrink to accommodate 6 weeks of demand by the end of 2028.

Platinum as an Investment

Platinum is extremely undervalued. In fact, it is more undervalued than gold. Currently, platinum’s market value is less than its cost to produce. Although gold’s production cost is lower than platinum’s production cost, the yellow metal’s current market value is over twice the market value of platinum. The current market value combined with platinum’s supply deficit, which is expected to continue through the remainder of this decade, point to a rise in value moving forward. Platinum is a precious metal you can utilize to offset inflation and diversify away from the risks associated with debt.

The Upside Potential in Platinum 

The platinum price per ounce in 1998 was $340 and within ten years, platinum reached an all-time high of $2,300 per ounce. Platinum gained approximately 550% in value between 1998 and 2008. Currently, platinum is $1,000 per ounce and the cost to produce platinum is currently $1,150 per ounce. Making platinum an attractive value at this level. When choosing an investment entry point, investors should implement a strategy to buy low and sell high. The current value of platinum appears to be extremely low and should offer a great opportunity for upside potential moving forward.

Johnson Matthey is a British multinational specialty chemicals and sustainable technology company that was established in 1817 and has been publishing reports on platinum since 1957. According to Johnson Matthey, platinum in 2024 will reach the biggest deficit in ten years. Based on supply and demand fundamentals, platinum appears to offer a greater opportunity than gold for upside potential moving forward.

The Different Ways You Can Invest in Platinum with Orion Metal Exchange

Physical Platinum IRA Program

Contact our IRA department by phone to establish an precious metal IRA account. With a phone call, you can buy, sell, and exchange precious metals in your retirement account as a non-taxable event.

Physical Platinum Commercial Depository Insured Storage Account

For investors seeking 3rd-party storage, we offer commercial depository options to secure and insure your precious metals. You can buy, sell, and exchange precious metals with a simple phone call with our commercial insured depository options.

Physical Platinum Insured Home Delivery

You can guarantee purchase pricing with a simple phone call. We provide an invoice before you provide payment. Your precious metals are discreetly shipped, insured, and guaranteed to your signature.

With Orion Metal Exchange, investing in platinum is simple. Call to learn more, 1-800-559-0088

The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.

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