Is Platinum a Good Investment? We Investigate | Bleyer Bullion (2024)

FAQs

Should I invest in platinum bullion? ›

Platinum is often considered a diversification option for investment portfolios, as it has a low correlation with other asset classes, such as stocks and bonds. Like other precious metals, platinum tends to hold its value over time so it has historically been used as an inflation hedge.

ANZ Research projected that the price of platinum would continue climbing over 2024, ending the year at $1,200/oz in December 2024, from $950 by the end of Q1 2024. Overall, it expected the precious metal to trade at an average of $1,058/oz in 2024, up from an estimated average of $945/oz in 2023.

However, it's important to note that platinum's value can also be more volatile, experiencing significant fluctuations. Consequently, investing in platinum may be more suitable if you have a higher risk tolerance. If you are generally a risk-averse person, then gold is more stable.

Today, the price of platinum is significantly lower than the price of gold. And yet, platinum was the best performing precious metal of 2022, up around 11% to about USD 1,068 an ounce over the year, compared to a rise of just 0.18% for gold.

The precious metal is forecast to be in a market deficit of 418,000 ounces in 2024—from prior expectations of 353,000 ounces—amid strained supply from the mining sector and declining recycling rates, according to a new report from the World Platinum Investment Council.

Platinum bars generally have the same ease at selling as government-issued coins when the bars are issued by a government mint. However, platinum bars also have a frequent distribution from private smelters as well.

Gold vs Platinum

Looking at the historical gold: platinum ratio, we can see that throughout history platinum has tended to be worth more than gold, but that this is not always the case. A savvy investor can use this ratio to find opportunities to profit from choosing to invest in one metal over another.

It is the most durable metal used to make jewellery. Platinum should last a lifetime and you should not have to reset your platinum engagement ring. Platinum is a naturally white metal that is highly resistant to tarnish.

Platinum's diverse industrial uses make up the second largest demand segment, accounting for between 27-36% of total demand in the last five years.

Gold remains a reliable choice for wealth preservation, while silver offers affordability and industrial uses. Platinum and palladium can provide diversification and potentially higher returns but come with increased volatility and limited investment options.

Why buy platinum instead of gold? ›

Platinum is generally valued higher than gold. This is because platinum is rarer than gold, has a higher density and is purer. Platinum rings require more platinum than gold rings require gold, which can increase the overall cost.

Platinum, a rare and valuable precious metal, is known for its industrial applications and potential as a hedge against inflation. One of the most accessible ways to invest in platinum is through mining company stocks, which offer exposure to the platinum market without physical ownership of the metal.

Because of this, platinum tends to be worth a lot more per ounce than silver. So if you're on a budget, silver might be the better option for you. That being said, it's important to remember that both metals are in high demand right now, particularly in the tech and industrial sectors.

The price of platinum changes along with its supply and demand; during periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold; whereas, during periods of economic uncertainty, the price of platinum tends to decrease because of reduced demand, falling ...

Platinum: Despite being nearly identical in appearance, platinum is more valuable than gold. Platinum's high price point can be attributed to its rarity and density as precious metals are often priced by their weight.

Platinum coins and bars: Little history as money

Some investors choose to buy small platinum bars instead. Typically weighing more than the 1 Troy ounce standard for platinum coins, these bars have a lower price per gram and carry lower manufacturing costs too.

The choice between silver and platinum as an investment depends on numerous factors, including your financial goals, risk tolerance, market conditions, and more. Platinum is often priced higher than gold due to its rarity, but silver is more affordable for investors on a modest budget.