Gold vs. Platinum: Which Is the Better Investment?

January 26, 2023

Gold versus platinum. It’s a common debate among precious metals investors, and for good reason. It’s impossible to predict where the price of gold or platinum will go, but we can certainly speculate on what the future has in store. 

Some precious metals investors are all-in on gold, while others prefer to diversify their holdings with less popular metals like platinum, as well as silver and palladium. While gold isn’t likely to give up its throne anytime soon, there are plenty of reasons to strongly consider adding precious white metals to one’s portfolio. 

Platinum, in particular, offers some unique benefits that can be quite enticing to savvy investors. At the same time, when comparing gold versus platinum, there are some factors that may cause an investor to stick with tried-and-true gold. Let’s take a look at both precious metals so you can make an informed decision.

Gold: The Classics Never Go Out of Style

Gold is the undisputed, quintessential precious metals investment vehicle for a reason. While other precious metals are relatively new to the scene, gold has an incredibly long history spanning countless centuries back to the ancient days. Gold has earned its sterling reputation by performing consistently, especially during periods of economic downturn.

Simply put, people believe in gold because they have no reason to doubt it. When comparing gold versus platinum, it’s important to consider volatility. If you compare the price of gold and platinum, it’s very clear that gold is far more stable — for better or worse. Many investors appreciate that they can put their full confidence in gold, knowing it won’t falter.

On the other hand, volatility isn’t necessarily a bad thing. Some investors appreciate how platinum moves because it allows them to ride the waves, buying low and holding or selling high, depending on their preferred approach. Additionally, while gold does have room to grow, many investors believe that platinum prices could skyrocket, while gold isn’t likely to perform as dramatically.

Platinum: The Up-and-Comer

When weighing the pros and cons of gold versus platinum, we shouldn’t only look to the past. Yes, gold is historically proven, but it’s important to also consider future possibilities. That’s where platinum becomes quite attractive. Although platinum doesn’t have centuries of data to analyze, we can look at current market conditions to speculate about its growth potential.

Beauty, rarity, and demand go an incredibly long way in determining value. While there are certainly other factors to consider, the fact that platinum is incredibly appealing to the eye, even rarer than gold, and highly demanded by multiple industries makes the white metal extremely attractive as an investment. 

There are obvious similarities when comparing gold versus platinum — both are finite, rare precious metals. However, platinum’s brilliant white sheen, unique use cases, and extreme rarity set it apart. The price of gold and platinum is based on rarity and demand. But in the case of platinum, speculation plays a significant role too. Many investors see a bright future for platinum, which naturally drives its price upward.

Gold: The Ultimate Safe Haven Asset

Gold bullion bars and coins

As you can see, there’s a very logical reason why so many investors have taken a major interest in platinum. Some even view it as the new gold rush — an opportunity for people to get in before the big boom. 

That said, when comparing gold versus platinum, it’s important to weigh risk versus reward too. There are no guarantees in investing, and higher potential usually means higher risk as well. That’s why gold remains the go-to among cautious investors — there’s very little risk involved.

The future price of gold and platinum is anyone’s guess, but we have centuries of data that prove gold’s stability and dependability. Although platinum was discovered in the early 1700s, it has only gained significant popularity as an investment in the modern era. So, gold provides safety, while platinum offers ample room for growth.

Platinum: Huge Growth Potential

Gold and platinum both have characteristics that make them crucial materials in a wide variety of industries. Of course, both are used to make jewelry, but that’s just the start. When choosing between gold versus platinum, considering both current and future applications is the key to making an informed decision.

One of the most common reasons why people are so interested in platinum is because of its use in the automotive industry, particularly in the manufacturing of catalytic converters. Because catalytic converters help to filter harmful toxins from exhaust fumes, many investors foresee a rising demand for platinum, especially as auto manufacturers seek ways to reduce the environmental impact of vehicles.

In addition to its current use cases, many investors view platinum as a resource that could have many other uses in future technologies. If you’re choosing between gold versus platinum, be sure to think about applications that are in their early stages or don’t yet exist. Platinum is the most ductile precious metal. So it has tremendous potential for technology that requires long, thin cables, for example.

Both Are Finite Resources

The price of gold and platinum is heavily based on their available supply. Both are finite, which means when their natural supply is gone, it’s gone for good. That’s a big reason why investing in precious metals is so popular among investors thinking long-term. Besides planning for your financial future, owning gold is a great way to provide financial security for future generations.

As you weigh gold versus platinum, think about both metals’ rarity. Platinum is approximately 20 times rarer than gold. Today, there are only two places with significant platinum supplies — Russia and South Africa — while gold can be found all over the globe. 

It’s no surprise that so many investors are scrambling to stake their claim on platinum, as there’s no guarantee that it’s always going to be as relatively affordable, or even accessible at all.

Both Add Diversity to a Financial Portfolio

A variety of bullion coins

By now, you should have a pretty solid understanding of the differences between gold versus platinum. That doesn’t mean you need to choose one or the other! Many experts highly recommend adding both metals to a portfolio, as they both offer their own distinctive benefits. Gold brings stability during tumultuous times, while platinum offers opportunities to grow your nest egg.

The great thing about both precious metals is that they’re tangible. You can hold them in your hand, store them privately at home, and liquidate them with ease. Understanding the nuances among each metal allows you to cater your investment to your financial goals and requirements, as well as your predictions for what the future holds.

A well-diversified portfolio offers protection. When one investment falters, you can lean on the others. In addition to comparing gold versus platinum, you may also want to look into silver and palladium, as well as numismatics and precious metals IRAs.

How to Invest in Gold and Platinum

The first step is to analyze the past and current prices of gold and platinum. Is now a good opportunity to jump in, or do you think the price will decrease soon? Once you believe you’ve found an ideal entry point, simply purchase gold bullion or platinum bullion products at Endeavor Metals. 

We make investing in precious metals as easy as buying any other product. You can shop online on our website, or visit us in person at our West Palm Beach location. All Endeavor products are backed by our 7-day, 100% money-back guarantee, even if the market has a downturn. 

Place Your Order With Full Confidence

Endeavor Metals is a Tier 1 US Mint bullion dealer. Over 50 years of in-house experience have earned us a stellar reputation. We have a 4.9 Google star rating and an A+ accredited grade on the Better Business Bureau. Our clients return again and again because we provide exemplary service and quality products at competitive prices.

Understanding the differences between gold versus platinum is the first step. If you have questions about the price of gold or platinum, how to choose the right products, or anything else, get in touch. Investing in precious metals can seem intimidating, but our experts are standing by to ensure you’re 100% confident in your decision, whatever it may be.

We hope this guide is helpful as you determine which investment vehicle makes the most sense for your specific financial goals. Should you buy platinum? Should you buy gold? Should you buy both? Let’s talk. We’ll help you compare gold versus platinum in relation to your unique situation. Diversify your investment portfolio with Endeavor Metals today.

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