Platinum vs. Gold: What Are the Differences?
Whether you are looking at the stock market or in the window of a jewelry store, the same question may pop into your mind.
What is the difference between platinum vs. gold?
They are both precious metals and both can see large amounts of cash given to their values. And it is true, apart from their aesthetics, they do have much in common.
But especially given that more and more of us are looking at investing in metals, the little differences between the two may make a big difference in the long run. As of writing the value of gold is higher than it has ever been. Is now the time to invest?
Well, we have put together a brief gold and platinum guide that will fill you in on all you need to know about the difference between these two special elements.
A Brief Gold Guide
Ever since humans placed eyes on this alluring metal it has drawn our attention.
It was first the Egyptians who pushed it up in status, using it in burials and for jewelry that we can still see today. It later was used as a currency by the Lydians and later the Romans and Greeks who could see the value in trading with such a precious metal.
But it is not just its appeal to the eyes that have pushed gold’s value up in society. Gold is an extremely malleable and dense material. For example, all you need is one ounce of gold to be able to produce a wire that is 1250 miles long!
This has led to various industries clamoring to use gold in a variety of ways. We all have approximately $1.50 of gold walking around with us each day due to its essential use in making mobile phones. Its low reactivity means that it is used a lot in the medical field, particularly dentistry, as it is rarely rejected by the body and is also bacteria resistant.
All of these factors and more have meant that gold investment has been a no-brainer for years. This is a commodity that is always in demand and relatively easy to get your hands on, so including it in your portfolio would never be an unwise decision. But before deciding to go all-in for gold, let’s do a deep dive into what platinum has to offer.
All You Need to Know About Platinum
Similar to gold, platinum has an ancient history. It was also used in ancient Egypt, however, the civilizations that perhaps gave it primary importance were in central and south America prior to the arrival of the Spanish. The indigenous peoples used platinum for the special jewelry that they wore for their ceremonies.
The name that we know it as now, platinum, comes from this part of the world. The Spanish when encountering the metal for the first time referred to it as “Platina” using the diminutive of its similar-looking cousin, silver (Plata).
This rare precious metal is highly valued and sought after for good reason.
Even more malleable than gold, platinum is used in many industries.
Besides the world of jewelry, it is particularly prized by the plane and car manufacturing fields for the production of engine turbines and catalytic converters. In addition, the medical industry makes good use of platinum for things such as pacemakers.
With these things in mind, there seems to be much in common between the two. So what are the differences between platinum vs. gold?
Platinum vs. Gold: Different Metals With Different Goals
Both these precious noble metals are useful and valuable, but there are marked differences between the two.
The first is price. As of today, the market value of gold is $1,814.00 per ounce in comparison to platinum which is $968.00 per ounce.
Upon doing any research you soon learn that platinum is not only harder to find but also hard to refine and process than gold. So in theory the higher price of gold doesn’t make any sense. But looking at it that way underestimates the hugely significant sentimental element in the equation.
Simply put, gold has been and will always be more appealing. In addition, in times of crisis, we tend to flock to commodities that have historically been places of security for the economy, and gold is the primary choice.
However, while gold is a steady ship due to it always being highly prized, platinum can make someone rich quicker, if timed right. The rarity of platinum has meant that historically when looking at platinum vs. gold, it has been platinum that has reached higher prices in the past. The highest that platinum was ever traded for was $2,182 per ounce, something that gold is only slowly coming close to now.
So what platinum tips will keep you in the black if you are interested in investing in platinum?
Above all, platinum seems to do well when businesses are booming. This is when companies have money, meaning that the industries that buy the majority of platinum are happy to spend that money and not look to cut corners. So if you can notice a trend indicating that the trough will soon turn into a crest of a wave then that is the time to get involved with platinum.
Will You Benefit From Gold or Platinum?
Whichever you decide to put around your neck, or in your investment portfolio, you can be assured that using gold or platinum will most definitely become one of your most prized possessions. We hope that our platinum and gold tips will help you on your way to making the right decision for you.
If you liked learning about platinum vs. gold then check out the other interesting finance and lifestyle articles on our site!