In the investing world, Gold and Platinum are two precious metals that have been popular for centuries.
Both have unique characteristics that make them attractive to investors.
But which is better when it comes to investment in 2023?
If we use price growth in the commodity from 1990 to 2023 as a measure, then Gold outshines Platinum (see chart below):
Gold: 566% : $330/oz USD to $1868/oz USD
Platinum : 309% : $311/oz USD to $961/oz USD
This article on Gold vs Platinum investment will examine what factors one should consider when making an investment decision.
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Gold vs Platinum: Ways to own it
In terms of Gold, investors have several options to choose from. One option is purchasing physical Gold as coins or bars, which can be held directly or stored at a depository. Another option is investing in gold-based financial products such as exchange-traded funds (ETFs), futures and options contracts, and even gold mining stocks. On the other hand, one can buy Platinum in physical form, but it is also available in the form of ETFs and stocks.
Gold Investment Assets
- Purchasing physical gold in the form of coins or bars
- Investing in a Gold IRA
- Investing in gold-based ETFs and Trusts
- Investing in gold futures and options contracts
- Buying gold mining stocks of mid-cap & large-cap companies
- Buying gold exploration mining stocks, i.e. junior-mining ventures
Platinum Investment Assets
- Purchasing physical platinum
- Investing in a Platinum IRA
- Investing in platinum-based ETFs and Trusts
- Investing in platinum futures and options contracts
- Buying platinum mining stocks of mid-cap & large-cap companies
- Buying platinum exploration mining stocks, i.e. junior-mining ventures
Gold vs Platinum Investment Performance
Gold Performance: Period Returns
| Period (Jan 1 Prices) | # Years | Start Price | End price | Performance |
| 2022 – 2023 | 1 | $1,800.10 | $1,824.16 | +1.3% |
| 2020 – 2023 | 3 | $1,520.55 | $1,824.16 | +20.0% |
| 2018 – 2023 | 5 | $1,312.80 | $1,824.16 | +39.0% |
| 2013 – 2023 | 10 | $1,681.50 | $1,824.16 | +8.5% |
| 2008 – 2023 | 15 | $840.75 | $1,824.16 | +117.1% |
| 2003 – 2023 | 20 | $342.20 | $1,824.16 | +433.3% |
Gold has performed well over the last 1, 3,5,10,15, and 20 years. It has had period returns from the more recent 2022 to 2023 period of 1.3% to the 20 year return of 433%.
Platinum Performance: Period Returns
| Period (Jan 1 Prices) | # Years | Start Price | End price | Performance |
| 2022 – 2023 | 1 | $954.00 | $1,069.00 | +12.0% |
| 2020 – 2023 | 3 | $985.00 | $1,069.00 | +8.5% |
| 2018 – 2023 | 5 | $947.80 | $1,069.00 | +12.8% |
| 2013 – 2023 | 10 | $1,566.00 | $1,069.00 | -31.7% |
| 2008 – 2023 | 15 | $1,541.00 | $1,069.00 | -30.6% |
| 2003 – 2023 | 20 | $608.00 | $1,069.00 | -75.8% |
Platinum has performed somewhat well over the more recent 1,3,and 5 years. However, Platinum’s performance is far worse over the last 10,15, and 20 years. It has had period returns from the more recent 2022 to 2023 period of 12.0% to the 20 year return of -75.8%.
Gold Performance: Annual Returns
From 2004-2023, Gold has mostly returned positive performance in 14 of those 20 years.
In 2010, we saw a peak performance for this precious metal of +29.24%.
And its worst return of -27.33% in 2013.
Platinum Performance: Annual Returns
From 2011-2022, Platinum has returned positive performance in half or 6 of those 12 years.
In 2019, we saw a peak performance for this precious metal of +21.48%.
And its worst return of -26.07% in 2015.
Investing in Gold
Gold is one of the most popular precious metals for investors because it has stood the test of time as a reliable hedge against inflation and economic uncertainty. Gold has historically been seen as a safe haven asset because its price usually rises during market turmoil or economic downturns.
Gold does not pay interest or dividends, unlike other assets such as stocks or bonds. Hence, there is no need to worry about changes to interest rates or other external factors affecting its value over time. Finally, since it’s easily bought and sold on global markets, gold offers investors high liquidity and can be purchased physically as coins or bars if desired.
Investing in Platinum
Platinum is a rare metal with many industrial uses, such as automobile catalytic converters. It also has several properties that make it an attractive investment option. Unlike Gold, one can trade Platinum on the stock exchange, which makes it more liquid than Gold.
Platinum prices are often less volatile than gold prices and are not affected by geopolitical events or central bank policy as much as gold prices are. Finally, since it is a rarer metal than gold, investors may see higher returns from their platinum investments.
Liquidity
One should consider liquidity when investing options such as Gold vs Platinum in 2023.
Liquid assets can be quickly converted into cash if needed, while illiquid assets cannot always provide this flexibility.
As mentioned before, while both metals can be bought and sold on global markets, they differ when it comes to how easily one can convert into cash due to differences in trading volume and market size; Platinum typically trades less frequently than Gold, so its liquidity may not match up with Gold’s liquidity levels at any given time.
Gold vs Platinum Ratio: Which is more precious?
| Year | Gold Average Price | Platinum Average Price | Gold to Platinum Ratio |
| 2023 | $1,885.76 | $993.10 | 1.90 |
| 2022 | $1,801.87 | $958.00 | 1.88 |
| 2021 | $1,798.89 | $1,088.51 | 1.65 |
| 2020 | $1,773.73 | $893.39 | 1.99 |
| 2019 | $1,393.34 | $868.04 | 1.61 |
| 2018 | $1,268.93 | $882.18 | 1.44 |
| 2017 | $1,260.39 | $950.49 | 1.33 |
| 2016 | $1,251.92 | $988.90 | 1.27 |
| 2015 | $1,158.86 | $1,050.61 | 1.10 |
| 2014 | $1,266.06 | $1,383.62 | 0.92 |
| 2013 | $1,409.51 | $1,484.73 | 0.95 |
| 2012 | $1,668.86 | $1,550.89 | 1.08 |
| 2011 | $1,573.16 | $1,719.03 | 0.92 |
| 2010 | $1,226.66 | $1,611.51 | 0.76 |
| 2009 | $973.66 | $1,205.79 | 0.81 |
| 2008 | $872.37 | $1,571.04 | 0.56 |
| 2007 | $696.43 | $1,306.22 | 0.53 |
| 2006 | $604.34 | $1,142.40 | 0.53 |
| 2005 | $444.99 | $896.92 | 0.50 |
| 2004 | $409.53 | $845.83 | 0.48 |
The table above shows the average price of Platinum and Gold precious metals from 2010 – 2023 and the ratio of gold to platinum.
Last 20 years: If you take the average from 2004 – 2023, we have a Gold to Platinum price ratio of 1.11.
Last 15 years: If you take the average from 2009 – 2023, we have a ratio of 1.31.
Last 10 years: If you take the average from 2014 – 2023, we have a ratio of 1.51.
Last 5 years: If you take the average from 2019 – 2023, we have a ratio of 1.80.
The Gold to platinum price ratio has been historically around 1.11, based on the average of the past 20 years (2004-2023). This ratio indicates that investors have yet to see a significant difference in worth between Gold and Platinum. However, the ratio shifts when we look at more recent timeframes. For example, over the last five years (2019-2023), the gold-to-platinum price ratio has been around 1.80, indicating that Gold has increased in relative worth compared to Platinum.
Overall, gold is becoming more valuable than platinum over time. This is likely due to several factors, including increasing demand for gold as a safe haven asset, changes in industrial applications and the global market environment.
It is important to note that the Gold vs platinum ratio can be quite volatile, and one should not use it as an absolute measure of worth. Instead, investors should consider various factors when deciding which precious metal is more valuable. These factors include supply and demand, economic conditions, geopolitical events, and industrial applications. It is also important to remember that the Gold vs platinum ratio can change over time, so investors must monitor the market closely to make sure they are making an informed investment decision.
Gold has become more valuable than platinum in recent years, as evidenced by a rising gold-to-platinum ratio. However, investors must consider various factors when deciding which precious metal is more valuable and monitor the market closely to ensure they make an informed investment decision.
Characteristics Of each Precious Metal
When considering whether to invest in either precious metal over another, investors must take into account the different characteristics each metal has that affect its value over time:
Supply & Demand
The supply & demand dynamics of each metal affect their prices differently; for example, fluctuations in auto manufacturing (which relies heavily on palladium) may cause wild swings in palladium prices, whereas changes in jewelry demand (which relies heavily on gold) typically have less effect on the price of gold compared to palladium.
Industrial Uses
Platinum is used extensively for industrial purposes such as catalytic converters. In contrast, gold does not typically have industrial applications, so its price depends more on investor demand than industrial demand.
Historical Performance
Looking at historical performance data can help investors get an idea of how each metal has performed over time relative to other investments.
Volatility
Both precious metals experience periods of heightened volatility, but palladium tends to experience larger swings than those seen with gold.
Store Of Value
Gold has traditionally been viewed as a store of value, whereas platinum has historically been viewed more as an industrial commodity with volatile prices.
Gold vs Platinum: Advantages & Disadvantages
When it comes to investment advantages and disadvantages, both Gold and Platinum have their pros and cons. Gold has a long history as a safe haven asset and is widely accepted in many countries. It is also highly liquid, which one can quickly convert into cash. On the downside, gold prices are volatile and subject to market fluctuations.
Platinum, on the other hand, has grown in popularity as an investment option in recent years thanks to its industrial uses. Like gold, it is also liquid and available in various financial products.
However, its price can be particularly volatile due to supply and demand issues.
Deciding between investing in platinum or gold ultimately comes down to personal preference. Some prefer investing in physical metals, while others prefer trading ETFs or buying stocks linked directly with commodity prices (such as mining companies).
Each asset class offers different advantages/disadvantages, so understanding your risk tolerance level and financial goals should help you decide which asset will best suit your needs in the future into 2023 and beyond!
Bottom Line
Investing involves risk no matter what type of asset you choose—be it stocks, bonds, commodities like precious metals like platinum or even cash equivalents—so being aware of these risks before committing your money is essential if you want your investment portfolio to grow over time without too much volatility along the way.
There are notable differences between Gold and Platinum, including supply & demand dynamics, historical performance levels, store of value status, volatility levels, industrial uses, etc.
Ultimately though, depending on your financial goals and risk tolerance levels, either could offer good returns if appropriately managed.
FAQ – Frequently Asked Questions
What are other precious metals?
Other precious metals include silver, palladium and rhodium. Silver has uses in a variety of applications, from jewelry to electronics. Palladium and rhodium uses are primarily for industrial purposes.
What is the World Platinum Investment Council?
The WPIC is an international non-profit organization that promotes and expands the platinum market by increasing investor demand and public awareness.
Through research, education and advocacy, WPIC works to increase the use of platinum in coins, bars, jewelry and industry applications. The WPIC also actively works with governments, industry leaders and the media to promote the use of platinum worldwide.
How can I buy or invest in gold and platinum?
Purchasing precious metals in platinum bullion and gold bullion coins or bars should be transacted through banks, precious metal dealers, and online retailers. Alternatively, investors can buy gold and platinum contracts on the futures or commodities markets. Investors can also invest in stocks of companies that produce gold and platinum products or have significant exposure to these markets.
What is the current spot price of gold?
The standard gold spot price is for 1 troy ounce of gold in US dollars. This can fluctuate daily depending on supply and demand dynamics and other global macroeconomic factors.
You can find the latest spot prices of gold at various sites online such as Kitco or BullionVault.
The metal’s price per ounce in $USD as of March 27, 2023 is $1961.20
What is the current spot price of platinum?
The spot price indicates the current market value for a particular commodity. The interplay between supply and demand forces in the global market determines the spot price of platinum. It fluctuates constantly, and investors can track it on websites like Kitco or BullionVault.
The metal’s price per ounce in $USD as of March 27, 2023 is $980.29
What are precious metal investments?
These financial instruments expose precious metal investors to the underlying value of gold, platinum and other metals. Options include purchasing physical coins or bars, investing in exchange-traded funds, and buying futures contracts or stocks of companies mining precious metals.
A gold investment will expose an investor to the price of the gold commodity.
A platinum investment will expose an investor to the price of the platinum commodity.
What is a Gold IRA?
A gold IRA (Individual Retirement Account) is a type of retirement account that allows investors to hold physical gold or other precious metals as a form of investment.
It is a self-directed IRA that gives investors more control over their retirement savings and allows them to diversify their portfolio beyond traditional investments such as stocks and bonds. The value of gold typically moves independently of stocks and bonds, which can provide a hedge against inflation and economic downturns.
What are the best Gold IRAs?
There are many Gold IRA companies to choose from like Augusta Precious Metals, Goldco, Birch Gold Corp, and more. Read our article on the Best Gold IRA Companies in 223 for more info.
What are precious metal dealers?
Precious metals dealers buy, sell and store gold, silver, platinum and other precious metals. Most have online stores where investors can purchase coins or bars at the current market rate. They also offer a range of storage options, from home safes to secure vaults.
