Gold Vs Platinum: Gold Comes Up Tops

 Gold Vs Platinum: Gold Comes Up Tops

Gold is one of the best metals to invest in, along with metals like Platinum, it has been in great demand. When it comes to these two precious metals platinum has always been ahead of gold price wise. However, at the rate that gold has been growing, it has demonstrated its stability. The Platinum price is rather volatile and recently it has been dropping at remarkable rates. At the moment, this precious metal costs 1,5 times less that its usual price. 

Looking back at the evolution of the pricing policy over the last decade, we can deduce what the future of gold. Reputable dealers are always looking at the gold price in relation to other precious metals. Melbourne bullion company watches these price trends to try forecast the demand for the precious metals it sells.

Platinum and gold 

Platinum gained prominence as far back as the times the Spanish were looking to conquer various countries for Spain. They were looking mainly for gold but came across this special white metal in South America as well as European countries in the mid 1800s. 

Over time the biggest suppliers of platinum in the world have been South Africa, Russia, China and Zimbabwe. 

Unlike gold, platinum has a limited application. It is mostly used in the car industry to create catalytic converters responsible for converting the carbon monoxide that cars produce into carbon dioxide. Whilst gold is mostly used in the production of jewellery, platinum is the second most used precious metal used to make jewellery. The jewellery industry might be the biggest consumer of gold but gold coins and bullion bars also sell very well. Central banks are the third largest buyers of gold. They keep gold in reserve and replenish these reserves every time there is a significant shift in the global market. 

The Platinum price fluctuates a lot. Over the last forty years (since the 80s) platinum went from $152 an ounce to $280 by the end of 2007, the price stood at $1,530 an ounce. Then out of the blue, the price plummeted in 2008. 2015 was rough for the platinum especially when the diesel engine car’s emission scandal broke. Suddenly, there was more platinum sitting unsold. The Platinum price fell to $873. The Platinum price has been struggling to increase, in 2018 it had decreased to $802/oz. In July 2019, Platinum was priced at $871/oz. and gold hit $1,400.

The gold price was fixed at $36 per ounce until 1976, when an exchange rate was introduced gold began to rally, reaching upwards of$387/oz. In 1995.  

For several years after 1999 gold rose to $834 and over the following years, the price rose by 70%. The price hit $1,405 briefly in 2010 but went down soon after that.

The gold price rose to $834 between 2000 and 2007.  The price increased by 70% to reach $1,405/oz.. Between 2007 and 2018 price rose by 15% with central banks procuring record-breaking volumes of gold. In 2019 gold once again proven why it has held the position of being a stable safe haven for investors when the demand rose by 7%.

Why are gold’s prospects so high?

Gold is used as an indicator of what is happening to the global economy. So, when the economy is bad, gold goes up. Gold is seen as a safe hedge in times of geopolitical instability. Gold is the most liquid precious metal in the market.  

The bottom line:

Gold will get more expensive as the demand grows. The market for this precious metal is a trusted, low-risk place for investing. It is the most transparent market. It is the most reliable investment for those who want invest their personal savings and accumulating sizeable interest. Experts are still forecasting further growth in the gold price in the near future. Anyone who is thinking of investing in gold should start with a Melbourne bullion company. It is important to note that the price that might be quoted by one dealer may be different at the next dealer, especially a dealer that specialises in gold bullion coins.

 

Paul Petersen

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