Is platinum more expensive than gold?

When shopping for rings, you often see several materials, yellow gold, platinum, 18k gold, and diamonds. These two materials are usually combined with diamonds to make a valuable engagement ring or wedding ring.

These combinations are known worldwide for their durability, shine, and lifetime wear resistance. We wondered if platinum was more expensive than gold, given how rare they are.

If you want to choose a ring representing eternal love, then platinum and diamonds are the best combinations in the ring setting. They represent the perfect combination of values of strength and commitment that foster lasting relationships.

1. What is platinum?

Platinum is a rare metal. Highly concentrated in one place underground, mining and refining platinum requires a significant investment of time and capital.

The 2-billion-year-old Bushveld Igneous Complex (BIC) in South Africa, home to the world's most significant platinum group metals (PGMs), has shed light on its formation to geologists. The Bushveld igneous complex has three significant orebodies containing platinum group metals, which provide approximately 75% of the world's platinum.

2. Uses of platinum.

Platinum can use in various industries according to its physical and catalytic properties and consumer and investment sectors. In recent times, end-use platinum in the automotive industry has had the highest share (37-41%), followed by jewelry (31-38%), industrial use (18-21%), and spot investment (2-11%). In addition to its role as a precious metal, platinum is also a popular industrial commodity widely used in the medical, manufacturing, and automotive industries. Platinum is also increasingly seen as a prized investment asset due to its obvious diversification benefits in private investment portfolios or pension plans. Investors looking to invest in this top precious metal can consider various options, including online bullion accounts, physical platinum bars, coins, and exchange-traded funds (ETFs).

3. Platinum's place in love

Platinum is also the metal of choice for high-quality jewelers who value platinum durability, strength, and beauty. Platinum's luster has a rustic appeal, but it complements diamonds and other gemstones perfectly, with its neutral color enhancing the gem's brilliance and depth.

Demand for platinum jewelry is likely to continue to grow as a new generation of newcomers embraces platinum as the ultimate in modern love, according to the Platinum Guild International's (PGI) Quarterly Business Review.

This year, the discovery came from the British royal family's wedding, where platinum jewelry was very eye-catching: Prince Harry chose a platinum ring as his wedding ring, while Princess Meghan Markle's tiara was inlaid platinum.

4. Advantages of platinum inlays

Most prestigious diamonds in the world—for example, the Hope, the Koh-i-Noor, and the Jonker—are made of platinum. Like a mosaic, this is no coincidence. In addition to providing a perfect metal substrate, platinum settings dramatically reduce the risk of these irreplaceable gemstones falling off.

It's crucial for people buying platinum jewelry to be sure they're buying real platinum, as platinum's similar appearance to white gold can sometimes be confusing. Platinum is easily mistaken for platinum. But in fact, what we usually call white gold is 18k white gold (gold with a gold content of 75%). The chemical element is Au, while platinum is called platinum, and the chemical element is Pt.

These two are very scarce precious metals, and there is no such thing as good or bad.

5. Let me talk about the properties of their respective metals.

Unlike white gold, which is alloyed or coated with other metals to achieve a white luster, platinum is a naturally white precious metal that does not require re-plating. Platinum is also denser than gold, and high-quality platinum jewelry is 40% heavier than 18K gold, giving a high-quality feel when worn.

What's more, platinum only needs to be mixed with a minimal amount of other platinum group metals to create an alloy that can be molded, cast, and made into the world's most elegant jewelry. Therefore, platinum is one of the purest jewelry metals. In most markets, platinum is 90% or 95% pure. By comparison, 18k gold or gold is only 75% pure, and 14K is only 58%.

The high purity of platinum means that it is less allergenic and therefore less likely to cause skin irritation. In contrast, the alloys used for platinum (especially nickel) are not always as well tolerated. Every piece of genuine platinum jewelry has its purity mark, such as Pt950, which reassures consumers that the platinum they are buying is accurate (95% pure).

In addition to its purity, density, and durability, platinum does widely recognized for its advantages as a safe and reliable setting metal. Even though platinum or yellow gold made the rings, platinum makes the setting and frame.

6. Price of platinum

Platinum has been a controversial investment in recent years. 

On the one hand, platinum is usually produced as a by-product of nickel, at around 250 tons per year, making platinum at least ten times scarcer than gold. And platinum, a rare metal, has many properties widely used in industrial applications. But the reality is that platinum has eclipsed in the precious metals space in recent years. The price of platinum rose to an all-time high of $2,300 an ounce in March 2008 but fell below $800 in October of the same year due to the subprime mortgage crisis, a 67% drop in just seven months. The 2008 price crash turned many investors away from platinum, hovering around $1,000 for years. Compared to gold, platinum has commanded a premium over gold for quite some time since 1974, reaching a bonus of $1,140 over gold in 2008. Platinum prices fell in 2014, and at the beginning of 2016, platinum prices were discounted by more than $250 compared to gold. In early 2018, gold was trading at an all-time high at a premium of about $350 to platinum. This phenomenon has also puzzled the investment community for a long time. Everyone can only explore the reasons for platinum's industrial metal properties and the negative market sentiment.