If you’re looking for something other than stocks and bonds to invest in, precious metals could be the answer. Both gold and platinum are high in value but is one better than the other when it comes to investing for the long term? Take a look at some of the pros and cons of platinum investing vs gold investing.
Gold has been a precious metal collected by many for centuries. It is the most popular metal for investment, especially during times of economic uncertainty. Gold is durable and can act as a hedge against inflation.
There are also lots of ways to start gold investing. Whether you choose to purchase jewelry, gold bars, coins, or even future contracts, it all counts as an investment. Did you know that some central banks still store gold in their official reserves because it is considered an alternative currency?
The value of gold usually decreases during economic boosts but whenever there is uncertainty in an economy, gold prices skyrocket. So, if you want peace of mind in the event of global economic failings, gold is your ticket.
Platinum has the highest value of all the precious metals. This is mainly because platinum has a lower supply than others. Platinum is only mined in two countries, Russia and South Africa, whereas gold can be mined in several countries.
Platinum has a much shorter history than gold but the automobile industry heavily relies on buying platinum to make vehicle parts that reduce emissions. Unlike gold, the demand for platinum increases when economic conditions are stable.
Which is the Best Investment?
Precious metals investing will heavily depend on what you want from your investment. The value of platinum can drastically change depending on supply and demand. The value of gold is often less than platinum but there is stability to it and the value dramatically increases during times of crisis.
If you want an investment that you can sell on at the drop of a hat, platinum is often the best choice. However, if you want something you can pass on to the grandkids, gold is more of a sentiment-based option.
Similarly, if there is a supply issue in Russia or South Africa with platinum, it can affect prices globally. However, if there is a supply issue in one country producing gold, it’s unlikely to affect the prices in other countries.
Platinum Investing vs Gold Investing
There are advantages to both platinum investing and gold investing. Keep an eye on the prices of each and the current global situation. When you get to grips with the way the prices fluctuate, it will be easier to make money on your investments now and in the future.
If you’re unsure of how to follow the price changes in correlation to the global economy, it’s worth asking a financial advisor for advice. For more great tips on investments and finance, take a browse through the rest of our articles.