Some investors may want to prioritize stability and long-term investment. In that case, gold is probably the best option. The precious metal has a long history of reliable demand that often increases during economic downturns. On the other hand, platinum tends to perform better during times of economic growth.
Gold has long been popular as a financial asset and because of its aesthetic value. Platinum is another precious metal used in jewelry and also has industrial applications. Both can be good investment options, but there are differences in terms of long-term stability and price fluctuations. One of the main reasons why many think platinum is more valuable than gold is that the latter, most of the time, has a lower price.
Gold and platinum prices tend to be very close, but generally speaking, gold tends to be less expensive than platinum most of the time. Combine higher prices with the perception that platinum is much rarer than gold and you'll get the impression that platinum is worth more than gold. Divergences in the gold-platinum ratio present investment possibilities (the price of gold divided by platinum). The ratio was lower than one in the past, indicating that platinum was more expensive than gold.
However, the current balance is around 1.6, meaning platinum is cheaper and more attractive. Anyone who keeps track of the prices of gold and platinum, and has done enough, should have realized this.
Precious metalssuch as platinum and gold offer attractive opportunities for investors seeking to diversify in the commodity market, and each has its own strengths, risks and market trends. The value of platinum is determined by supply and demand, but the value of gold is mainly influenced by the mood of the market.
Single men can go out as gold-diggers and try their luck with only their bare hands and a few tools. When there is an economic recession or crisis, gold prices rise because investors seek refuge in precious metals. The Geological Survey (USGS) indicates that platinum is actually more common than gold in the Earth's crust. So how do you explain the price of gold and platinum? To better understand how the prices of gold and platinum are determined, it is important to analyze supply and demand.
Platinum doesn't have the same status as gold in the culture and history of people around the world. Many governments and individuals store quantities of gold because of its perceived value as an alternative currency. The price difference between the two metals shows supply and demand and the economic variables that influence each metal separately, such as the role of platinum in the care sector and the role of gold as a refuge during economic crises. Platinum is traded in both off-exchange and physical markets, although its options trading volume is much lower than that of gold.
While 24-carat gold, or gold with a fineness of three nines, is fairly soft and bends, pure platinum is tough enough to withstand the wear and tear of everyday use. Due to trade tensions between the United States and China and to dismal global economic development, gold prices have risen. Although platinum is a precious metal, its end use is usually similar to that of industrial metals such as copper or aluminum. Central banks also store gold in their official reserves because of its perceived value as an alternative currency.
The COMEX subsidiary of the CME Group in New York and the Tokyo Commodity Exchange are the two main gold futures markets.