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. In the end, precious metals have their uses as investments, such as Gold IRA rollovers. 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 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. One of the main reasons why many think platinum is more valuable than gold is that the latter, most of the time, has a lower price.
Gold and platinum prices tend to be very close, but generally speaking, gold tends to be less expensive than platinum most of the time. Combine higher prices with the perception that platinum is much rarer than gold and you'll get the impression that platinum is worth more than gold. 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. Many investors invest in gold to complement traditional stocks and bonds, since gold can be used to replace fiat currency in the event of an economic downturn. New investors may wonder if platinum is a better investment than gold because of words like “the gold standard” and “a platinum record”. Nowadays, many people invest in gold as a supplement to traditional stocks and bonds because gold can be used instead of fiat currency in the event of an economic crisis.
Occasionally, gold requires a premium over platinum, while platinum sometimes has a premium on gold. So how do you explain the price of gold and platinum? To better understand how the prices of gold and platinum are determined, it is important to analyze supply and demand. The combination of higher gold production and the fact that gold mining takes place for much longer results in less platinum than gold in the world above ground. Gold can be purchased in the form of jewelry, coins, ingots, derivatives, futures contracts and gold exchange-traded funds (ETFs).
