Gold Vs Platinum: Which Is A Better Investment?

Gold is the granddaddy of precious metals, at least from an investment perspective. But other precious metals such as platinum and silver have their own place in a savvy investor’s portfolio. They are tangible assets with intrinsic value. The Federal Reserve cannot print more of them. Both gold and platinum have their own unique qualities. In this gold vs platinum comparison, let’s check out which precious metal is a better investment and why.

Precious metals have attracted investors looking to diversify their portfolio of stocks, bonds, and cash. For centuries, platinum has been considered a higher symbol of value and quality, primarily because it’s rare and more difficult to mine. According to the US Funds, worldwide gold production stood at 3,332 tonnes in 2018 compared to just 165 tons of platinum.

Gold

Gold is by far the most popular investment among precious metals. Investors large and small buy gold to diversify their portfolio, especially during uncertain economic conditions. The yellow metal is durable, malleable, and it acts as a hedge against inflation. You can invest in gold by purchasing jewelry, coins, bars, bullion, derivatives, futures contracts, and gold ETFs.

Gold prices go up when there is an economic crisis or slowdown as investors run to the safety of precious metals. Though it serves as a hedge against inflation, it doesn’t have growth potential. A 10g gold coin will still be a 10g gold coin even after years or decades.

Jewelry accounts for nearly half of the gold demand worldwide. The yellow metal also has applications in dentistry, electronics, and aerospace industries. Central banks also store gold in their official reserves because of its perceived value as an alternative currency.

Since gold is a store of value, its price depends less on the laws of supply and demand, and more on the sentiments of individuals and institutions hoarding it. When the economy is booming, investors sell gold to invest in stocks and other assets, which brings down its price. During unstable economic conditions, they rush to buy gold, which pushes its prices higher.

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Disclaimer: This article is NOT an investment recommendation, Please see our disclaimer - Get our 10 free ...

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