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

FAQs

Is platinum bullion a good investment? ›

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.

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.

Based on the price action over the past years, platinum is back in the buy zone well below the $1,000 level in late June 2023, and the odds favor a rally above the pivot point.

Platinum is considered one of the most valuable Precious Metals due to its rarity and essential value in both the economic and automotive industries.

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.

Pure silver is generally hypoallergenic, but not all types are completely hypoallergenic. Platinum is rarer and more valuable than silver, making it a potentially lucrative investment. Silver retains its value over time and can be a good investment option due to its widespread industrial use and affordability.

Main takeaways: Platinum Forecast 2024–2030

Analysts foresee platinum stabilizing around $1,000/oz after 2024 (as for February 22, 2024), setting the stage for a gradual climb towards the range of $1,200 to $1,400/oz over the next 5 to 7 years.

The precious metal may not be the toughest or most cost-efficient, but it's among some of the most valuable. In fact, that value is part of the reason platinum coins aren't used in circulation as much as they are used as collectors' items, such as bullion coins from platinum bullion bars.

Is platinum more valuable than 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 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. So, they tend to get tested with far more scrutiny as a result.

Will platinum rise in 2024? ›

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.

Precious metals, such as platinum and palladium, exhibit a significant relationship with economic conditions. In times of economic downturn, these metals experience a decrease in demand due to a decline in industrial production and global economic uncertainty. Consequently, their prices tend to follow a downward trend.

We don't offer platinum and palladium because they're not monetary metals, have not protected investors during recessions or stock market crashes, and because their uses are overwhelmingly industrial. Bottom line, platinum and palladium have never been viewed as money, and they're not money now.

The downside of Platinum is that it tends to lose its high polish and sharp edges fairly quickly.

Gold. Gold is the most well-known and investable precious metal. It's unique for its durability (it doesn't corrode), shaping capability, and ability to conduct heat and electricity. While it has some industrial uses in dentistry and electronics, it's primarily used to make jewelry or as a form of currency.

While gold is considered a more stable investment option, platinum prices tend to fluctuate more due to its industrial uses and market dynamics. In recent years, platinum prices have been affected by the rise of electric vehicles, as they do not require catalytic converters, the primary industrial use for platinum.

For starters, gold is far more abundant in the earth's crust, making platinum rarer. Whilst 1,500 tons of gold are mined annually, only 160 tons of platinum are extracted. When people ask 'Why is platinum not as popular as gold?,' it's perhaps less a question of popularity and more a matter of rarity.

No, the resale value of platinum is usually poor. Is the purity of platinum jewellery high? Yes, platinum jewelery is 85% - 95% pure.