Gold vs Platinum Investment: Which Is Better?

By John Otis

May 18, 2021

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Although lots of investors champion gold and silver investments, they can tend to overlook the other precious metals. While these might not have the reputation as those two, they can still provide plenty of value to portfolios.

Among the best precious metals around is platinum. If you’ve ever been impressed by jewelry, it might’ve been platinum.

A good deal of investors believe platinum actually costs more than gold. That was the case for a long time, but as demand fell, so did the price of platinum. However, there are some who think that platinum is poised for a comeback.

Wouldn't you like to be in on that early? After all, it’s a great way to make a profit and potentially give your portfolio a serious boost.

Platinum Value

The main usages of platinum and industrial and jewelry. Lots of bands for wedding rings are made out of platinum. Industry-wise, it’s mainly used to build catalytic converters.

Platinum doesn’t corrode easily, which makes it so sought-after for catalytic converters. You can also find this precious metal in dental equipment and electronics. The car industry makes up roughly 35 percent of platinum consumption. Jewelry accounts for between 20 and 25 percent, while roughly 15 percent is from investments.

Nearly three-quarters of all the platinum in the world is in South Africa. This is rounded out by Canada, the United States, and Russia. If there’s an issue in any of those countries, it could affect the whole world.

As of late, the cost of platinum is far less than that of gold. It’s because not as many car manufacturers are looking for it in their catalytic converters. Instead, they’re going for palladium, which is more affordable. At least, it was for some time.

However, palladium has been seeing a pretty sharp increase in price. This means there’s a very good chance many manufacturers will come back to the way of the platinum. If you’re mulling over whether to invest in platinum instead of gold, think about what the growth potential is.

Gold Value

For thousands of years, gold has been used as currency. However, the gold standard that we think of lasted from 1870 until 1914. Afterward, gold remained a powerful force in the economic world, despite it being very tough for regular folks to get in on it.

When the gold window closed in 1971 and owning gold became legal in 1975, there was a sudden surge in new gold investors. The government would no longer determine the price of gold. Instead, it would move based on what the market was dictating.

It’s very taxing and costly to mine gold. However, all of the gold doesn’t come from mining. A lot is from recycling it, via old electronics. Gold has major importance in both industrial and investment capacities.

The emergence of financial items like exchange-traded funds also has an impact on the demand for gold. These involve buying and keeping gold so that investor shares are properly backed.

With there being a serious looming recession risk, there’s sure to be more people looking to gold as a means of surviving a potential disaster. This means that gold could hit record highs in just a few years.

Some experts see gold rising to a minimum of $10,000 while some think upwards of $30,000! That may seem unrealistic at first, but remember this:

The Federal Reserve just printed over six TRILLION dollars within the last year alone. That's more money printed in one year, than every year since 1776 COMBINED!

Gold vs Platinum: What are the Differences?

Gold is the most valuable precious metal due to how rare it is compared to the others. Since more people want gold, there’s a lot more of it being produced compared to platinum.

The yearly platinum production is usually less than 200 tons. While that’s certainly a huge quantity under most circumstances, it’s relatively small in the context of precious metals.

The South Africa concentration also means it’s crucial that mining in that country is stable. Otherwise, the price of platinum could go through the roof.

If you want to help stabilize your investment portfolio, gold is recommended since it’s been known to hold up over time with price. Meanwhile, the price of platinum can be a lot more volatile.

That being said, platinum still has a much higher price now compared to 20 years ago. Since many investors believe that platinum is poised for a price comeback, you could find yourself significantly rewarded in the future by investing in platinum now.

Consider Adding More to Your 401(k), If Possible

Have you recently received a raise or seen some fortune via the stock market? Use this to your future advantage, and put it in your 401(k).

Spending habits have changed significantly with the pandemic, and you’ve probably saved a lot more than you realized.

If you can up your 401(k) contributions by even single percentages, you can make a significant change for the better. This could be money that you were previously spending on frivolous things that you ultimately didn’t need to.

There’s a time and place for everything, after all. And sometimes, it’s better to reward yourself in the future.

Which One Do I Choose?

Choosing to invest in gold or platinum is ultimately a decision to be made at your discretion. However, it’s not one you should make without thinking about a few things first, such as:

1. Amount of time you plan to own these metals

2. When you anticipate taking retirement account distributions

3. A preference for stability or growth

4. Plans for how to invest in the precious metals

Once you’ve considered the kind of gold or platinum you want for investing and how you intend to do that, you might realize which option is better for you. It’s important to research your options as much as possible, including looking up multiple precious metals firms before settling on one.

How To Invest

You can invest in platinum just as you would for silver or gold.

1. Bars and Coins

You might have a hard time imagining a platinum coin, but they do exist. They rank third in terms of precious metal coin and bar manufacturing. Look at the different options available to see what’s right for your portfolio.

2. Jewelry

Although the price of platinum is lower than gold, platinum jewelry still costs more. However, it might be better to invest in gold jewelry since you can get a better long-term investment with gold.

3. ETFs

Short for exchange-traded funds, these have grown in popularity as people are looking for ways to get into commodities such as precious metals. That said, these aren’t the best if you’re trying to invest in platinum or gold.

There are hundreds of precious metal companies out there to consider investing with. The following three are the best that we have found. 

Each one has hundreds of positive reviews from customers within the last year alone. Goldco, the #1 option, has thousands of five star reviews!

With such an excellent reputation, you can't go wrong by simply requesting a free gold investing guide. You can do so by clicking here or "Visit Site" below.

  • Thousands of 5 star reviews
  • Top overall choice
  • Excellent customer experience
  • A+ BBB rating
  • Free gold investing kit
  • 4.96 overall rating on BBB
  • Excellent customer reviews
  • No cost portfolio review
  • Great leadership team
  • In business since 2003
  • Solid reviews
  • Great educators

Final Thoughts

If you want to invest in precious metals and protect your portfolio, both gold and platinum can give you serious leverage.

You might be unsure about which one is best for you at this exact moment, but with research and soul-searching, you can reach a happy conclusion. We hope you found this guide useful.

Let us know if you have any questions about anything or additional thoughts on precious metal investments. 

To Your Success,


John Otis

About the author - John Otis

In the modern age of reckless government spending and central bank money printing, my sole objective is to help others protect their savings, retirement, livelihoods, and purchasing power from currency devaluation. Otis Gold has been featured in Financial Times, Yahoo Finance, Kitco News, Motley Fool, Seeking Alpha, and more. If you have any questions or comments, leave them below. Welcome!

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