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

FAQs

Should I invest in platinum bullion? ›

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.

The increasing scarcity of platinum and its rising demand in various industries should drive up its price. Platinum is currently considered to be historically undervalued by industry analysts, presenting potential opportunities for investors. Investors should remain vigilant and informed though.

However, it's important to note that platinum's value can also be more volatile, experiencing significant fluctuations. Consequently, investing in platinum may be more suitable if you have a higher risk tolerance. If you are generally a risk-averse person, then gold is more stable.

The price of platinum changes along with its supply and demand; during periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold; whereas, during periods of economic uncertainty, the price of platinum tends to decrease because of reduced demand, falling ...

The precious metal is forecast to be in a market deficit of 418,000 ounces in 2024—from prior expectations of 353,000 ounces—amid strained supply from the mining sector and declining recycling rates, according to a new report from the World Platinum Investment Council.

Coveted for its beauty and rarity, platinum continues to offer similar financial benefits to its more popular precious metals and remains a viable option for today's investors. Although a rare precious metal, platinum plays a pivotal role in multiple industries around the world.

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.

As well as expecting consecutive deficits in 2023 and 2024, the WPIC forecasts that the platinum market will remain undersupplied throughout 2025 to 2028, with deficits averaging around 550koz per annum, or approximately 7% of demand.

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.

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.

Why buy platinum instead of 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 is a very dense metal which means it has excellent resistance to wearing away. A wedding ring made in Platinum could be worn for decades and barely lose any thickness at all. The downside of Platinum is that it tends to lose its high polish and sharp edges fairly quickly.

Long-Term Platinum Predictions 2026–2030

According to their predictions, its price could hit over $3,000 by 2030 (as for February 22, 2024). WalletInvestor also remains bullish on platinum's outlook based on increasing substitution for palladium and platinum pivotal role in green technologies.

Various factors affect it, the most significant being supply and demand dynamics. Other factors, such as economic conditions, geopolitical events, and changes in industrial and investment demand, can also impact the price of platinum. At the start of the new millennium, the precious metal's spot price was around $420.

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. But again, private individuals face a limited range with poor availability, and costs remain very high compared to other investments.

Because of this, platinum tends to be worth a lot more per ounce than silver. So if you're on a budget, silver might be the better option for you. That being said, it's important to remember that both metals are in high demand right now, particularly in the tech and industrial sectors.

Because platinum is more expensive and rare than gold, and even more so when it comes to silver. Many jewelry stores don't even carry pieces in platinum because of the cost. Most private jewelers do but not a whole lot of pieces.