BUY PLATINUM
Platinum, often referred to as Rich Man’s Gold, is significantly rarer than gold and has historically been more expensive. Over the past 40 years, its price has averaged 1.5 times that of gold.
What Makes Platinum Unique?
Platinum (Pt) is a heavy, soft, and highly ductile noble metal. As a noble metal, it resists corrosion, chemicals, and degradation by acids, maintaining its integrity over time. Its catalytic properties—discovered by German chemist Johann Wolfgang Döbereiner in the 19th century—make it indispensable for accelerating chemical reactions without altering itself.
USES OF PLATINUM
Automotive
The primary use of platinum is in catalytic converters, which reduce pollutants from car exhaust gases. Its use in diesel engines and its substitution by palladium in some applications are noteworthy.
Jewelry
Platinum’s durability, corrosion resistance, and malleability make it a preferred metal for high-end jewelry.
Medical and Industrial
Its unreactive nature makes it ideal for dental fillings, surgical tools, and hydrogen fuel cells.
Other Uses
It’s utilized in lasers, photography, and various electrical applications.
Unlike gold and silver, platinum has not historically served as currency. Discovered in 1735 by geologist Antonio de Ulloa, it lacks the monetary legacy of other precious metals. Today, investment-grade platinum is available in popular forms through Constitutional Gold Group:
WHY IS PLATINUM CURRENTLY AFFORDABLE?
Relative to gold, silver, and palladium, platinum is historically undervalued. Its price peaked at $2,243 per troy ounce in March 2008 but has since declined significantly.
| Metal | 2008 Price | 2024 Price | % Change |
|---|---|---|---|
| Gold | $886 | $2,235 | +152.26% |
| Silver | $16.90 | $24.83 | +46.92% |
| Platinum | $2,243 | $908.84 | -59.48% |
| Palladium | $439 | $1,016.48 | +131.54% |
The decline in platinum prices is attributed to shifts from supply deficits to surpluses and changes in industrial demand. However, the World Platinum Council forecasts growth in demand driven by hydrogen fuel cell technology and clean energy initiatives, potentially boosting prices.
Platinum Uses Chart 2024
Source: Metals Focus
WHY INVEST IN PLATINUM NOW?
Extreme Rarity
Platinum is over 25 times rarer than gold. All the platinum ever mined could fit in a 25×25-foot room.
Limited Supply
Unlike gold, 71% of platinum mined has been consumed for industrial and automotive purposes, leaving it minimally available for trade.
Fragile Supply Chain
Three-quarters of the global platinum supply comes from South Africa, a region prone to disruptions like labor strikes, energy shortages, and political instability.
Potential for Price Growth
A slight increase in investment demand could significantly impact platinum prices due to its limited supply.
Current Prices Below Production Costs
With production costs averaging $900 per ounce, platinum’s current price presents a low-risk investment opportunity.
Market Deficits
Platinum is projected to face a third consecutive year of market deficits in 2025, narrowing to 539,000 oz in 2025. The metal’s consistent deficits are driven by its broad applications across various end markets. Demand from the automotive, jewelry, and investment sectors is expected to grow in 2025, largely balancing out the impact of cyclically weaker industrial demand. Notably, automotive demand is forecasted to reach an eight-year high in 2025.
SHOULD YOU ADD PLATINUM TO YOUR PORTFOLIO?
Platinum, as a time-tested “money metal,” is a strong complement to gold and silver in a diversified precious metals portfolio. Investors willing to speculate on its unique market dynamics should consider allocating a portion of their assets to platinum.
Your Constitutional Gold Group Account Representative is here to help you determine if platinum is the right addition to your hard asset strategy.
Explore platinum investment opportunities today and diversify with one of the rarest and most versatile metals on Earth.