In general, platinum is not a better investment than gold. Gold is more stable, is more easily mined, and its price doesn't fluctuate as much as platinum. And the value of gold is considerably greater than that of platinum. In the end, precious metals have their uses as investments.
When political or economic uncertainty hits, investors often turn to alternative or tangible assets to protect their portfolios. Precious metals such as gold are just one option available to you. However, all investments come with risks. Platinum has higher volatility than other options, making it more susceptible to price drops.
Meanwhile, gold remains relatively stable, but it may not be a solid hedge against short-term inflation. In reality, platinum is not a better investment than gold. Gold is more stable and available for mining, and its price doesn't change like platinum. Gold is worth much more than platinum.
Like gold and silver, platinum is traded 24 hours a day on global commodity markets. It tends to reach a higher price (per troy ounce) than gold during routine periods of political and market stability simply because it is much rarer. In fact, much less metal is extracted from the ground every year. Platinum is much more difficult to extract than gold, resulting in greater utility and practicality than gold.
It is more difficult to manufacture because platinum is found lower in the ground and requires a more rigorous purification procedure than gold. While gold is a big investment, the cost of buying significant amounts of gold can be a bit prohibitive for some newer investors. Investors of various sizes buy gold to diversify their portfolios, especially during uncertain economic times, when the price of the $500 of 26 pence risks collapsing. In this comparison between gold and platinum, let's see which precious metal is a better investment and why.
You can physically trade platinum, for example, with currencies, or you can use stocks, mutual funds or ETFs that sell platinum bars. There are many ways to buy precious metals such as gold, silver and platinum, and a number of good reasons why you should give in to the treasure hunt. For investors who want to quickly add large amounts of ingots to their portfolios, ingots are also an excellent option. While copper is often overlooked as an investment compared to gold and silver, an increasing number of investors are starting to buy copper ingots and ingots to protect their portfolios from further currency devaluation.
Both have value in jewelry and industrial uses, whether in catalytic (platinum) or electronic (gold) converters. Gold is also in industrial demand, such as platinum, due to its use in electronics, dentistry and aerospace. When it comes to flexibility as a means of investment, bullion is the clear winner among investments in precious metals. If you want to invest in currencies, it's important to understand that your investment may involve more than just bullion value.
Therefore, it is a valuable short-term investment that usually generates higher immediate returns compared to gold. From the point of view of investment theory, precious metals also provide a low or negative correlation with other asset classes, such as stocks and bonds. Occasionally, gold requires a premium over platinum, while platinum sometimes has a premium on gold.