It almost seems like Gold and platinum don’t follow the same rules as other investments. Have you noticed that? Prices for gold have skyrocketed from $410 per ounce in 2004 to more than $2700 per ounce today. The price for platinum was more than double gold in 2004. Now, it’s trading for less than half!
How does that happen? Gold is more abundant than platinum, making it a safer investment with greater liquidity and stability. That makes sense. What doesn’t make sense is that gold trades for more money. Platinum is far rarer. Gold is more abundant in the earth's crust than platinum. For example, in 2022, 3,100 metric tons of gold were produced, while only 190 metric tons of platinum entered the market. The would ordinarily make platinum sell for far more than gold.
However, demand is important in this case. Gold is more steadily in demand than platinum. Gold's demand is less influenced by economic factors because it's used in industries like jewelry, electrical, and medical. In contrast, platinum's value is directly tied to manufacturing, specifically in the creation of catalytic converters. Gold's value often increases in times of economic downturn. Platinum usually does not. An economic rebound in 2024 could lead to increased demand for automobiles and therefore drive up the cost of platinum again.
But who knows?
The bottom line is that gold and platinum investment is something that ought to be determined on an individual basis after getting advice from a financial professional. If, on the other hand, you have platinum coins or jewelry you want to sell, you still might want to get advice from a finance professional to help you determine if holding or selling is a good course of action for you.
If you do decide to sell, give me a call. I’d love to help. We pride ourselves on working toward win-win transactions and believe in a fair deal. You can drop by the showroom in La Jolla and we’ll give you a free verbal appraisal of your jewelry before we make you an offer. If you’re selling, we’re buying.
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