Platinum vs Gold: Which is better to Invest?

Gold has proven an excellent investment asset but platinum too is an option available for investors who are keen to put their money in precious metals. As financial assets, all precious metals have their strengths and weaknesses. The shiny white metal and the yellow metal, both respond differently to economic situations. They both are aesthetically valuable but market fluctuations can impact the way a savvy investor would want to buy gold bullion or platinum bullion.

What are your investment goals? Are you planning a long term investment?

If you are confused about whether to invest in platinum or gold bullion bars, you need to ask yourself the above mentioned questions as these can impact your decision.

Without further ado, let's dive deeper and find out the differences between the two most sought after metals.

Gold vs Platinum

According to statista.com, the total mine production of platinum globally was approximately 170 metric tons in 2020 whilst gold that was produced worldwide was approximately 3,200 metric tons.

At present, China is the leading gold mining country in the world. Australia and Russia are at number two and three respectively.

As per the World Platinum Investment Council, most of the platinum is produced in South Africa and Russia. The process of platinum production is more challenging than that of gold. The shiny white metal is located deep in the earth crust and the steps to purify it are also very difficult.

Gold offers much more liquidity than platinum. The yellow metal has a high trading volume every day worldwide as compared to platinum. The white metal gets affected by market fluctuations and price swings promptly as it is scarce, has limited production and lower liquidity. On the other hand, gold is considered a hedge against market changes and economic downturns.

The demand and supply of both these valuable metals impact their prices and in turn the interest of investors and traders in them. Below we have mentioned the uses of both metals that keep them in demand.

Uses of Platinum

Platinum finds its usage in various industrial applications as it is highly malleable and dense. It is used in the automobile, medical and jewellery industries. Medical devices such as pacemakers also use platinum. The shiny white metal is also used in the manufacturing of cars and planes.

Uses of Gold

Gold too finds its usage in various industries such as jewellery, electronics, dentistry and aerospace. The yellow metal also finds its applications in the field of art and computers.

Gold vs Platinum Bullion

Investors like to invest in both gold and platinum bullion bars and coins depending on how they want to diversify their portfolios. If we look back into history, platinum has always been more expensive than gold. But over a decade now, the trend has changed and gold had taken over platinum in terms of price. Now the price of gold is higher than platinum.

The ratio of platinum and gold prices indicate current market sentiment. One can plan to buy platinum bars or gold bars to diversify one's portfolio or to make profits in trading when divergence happens.

The price difference between the two metals indicates their supply and demand. Both, the white and yellow metals, tend to move in the same direction. Economic issues impact them independently and hence it is recommended to keep an eye on the current issues. When most of the demand for white metal comes from the automobile industry, investors look towards gold as a hedge asset during economic downturns.

If you are planning to invest in precious metals, head straight to the Central Bullion platform. It's a global marketplace where one can buy gold bars online, along with other valuable metals such as silver, platinum and palladium. Apart from the bullion bars, investment and collectable coins, luxury precious metal gift items and other materials too are available on the platform.