Gold Vs Platinum: Which is the Better Investment?
New investors tend to struggle a lot when selecting which type of precious metal is right for them. It’s true that you have several options when looking for the perfect gold, silver, platinum, or palladium product.
Today, we’re taking a look at a classic choice that new – and seasoned – precious metal collectors face. Both gold and platinum offer high industrial demand, impressive value appreciation potential, and beautiful products with exceptional numismatic value.
Gold vs platinum: which is the better investment for you? There’s no one right answer to this question. Gold is more expensive but might offer a longer history of value among collectors. And while platinum is cheaper and might look more beautiful than gold, its short history and inconsistent industrial demand may be cause for concern to some investors.
We’re covering the key differences between gold vs platinum in today’s Bullion Academy guide for new investors.
Why Invest in Gold or Platinum?
Gold and platinum stackers invest in precious metals for a variety of reasons. Some investors view gold coins and bars as a way to diversify their portfolios with a non-correlated asset. To these collectors, gold and other precious metals are a means to an end. When the traditional stock market enters a period of decline and tanks the value of their portfolios, precious metals remain stead – and keep them in the green.
Other investors consider gold, platinum, and silver bars and coins to be a numismatic investment. Numismatic investments are valued for more than just their precious metal content. To this class of investors, buying a gold coin means investing in the history and beauty of these collectable pieces.
No matter where you fall on the gold vs platinum debate, precious metals are considered a solid safe haven asset. This means that your investment might be protected in value, even if the rest of the economy struggles to keep up.
Gold Vs Platinum Bullion
Once you’ve decided that precious metals are the right choice for your growing investment portfolio, you have another difficult choice ahead of you. Gold vs platinum: which asset is better for you?
The answer depends, of course, on a couple of factors. The first thing you should consider when weighing gold vs platinum is your own personal preferences. Do you like the classic look of gold coins and bars, or is the shiny appearance of platinum more your style? Even if you plan to sell your investment in the future, it’s still important to think about whether or not you like how your physical assets look.
Second, consider your investment objectives and time horizon. Gold is traded primarily for its beauty and intrinsic value. While some technologies and commodities use gold, platinum offers a wider array of industrial use-cases. If you’re an investor who likes to see your assets gain value when new technologies make use of them, platinum may be the better choice.
To better understand the gold vs platinum debate among investors, we should take a closer look at the advantages offered by both of these precious metals.
Advantages of Buying Gold
We’ll start with gold. Compared to platinum, gold is a much older precious metal. Truthfully, both of these metals are about as old as the Earth. However, the timeline for actual human use of gold and platinum to store wealth is a much newer phenomenon.
Gold has been traded and valued for thousands of years. We often talk about the Ancient Egyptians when discussing the history of gold bullion – and there’s an important reason for this. The Ancient Egyptians were some of the first people to see the true value of both gold and silver.
Today, gold remains the top choice for investors who want to put their money into precious metals.
Historical Value Appreciation
When we compare gold vs platinum, historical value appreciation is an important factor. This is where gold really tends to shine. Because of its long history as a tradeable asset, gold has established itself over hundreds of years.
In more recent history, gold also has a lot to offer. Gold’s prices spiked considerably during the 2008 financial crisis and continued to climb until the market stuttered and fell in 2011. Since then, gold prices have increased significantly following a recent low in 2015.
That isn’t to say that platinum’s historical value is lacking. But when we compare gold vs platinum, investors often consider gold to be the more favorable asset historically.
Classic Look and Instant Recognizability
Remember: platinum is a relatively new asset compared to gold. This means that gold offers both a classic look and instant recognizability. If you show a gold bar to someone who has never bought gold in their life, they’ll know exactly what they’re looking at. While platinum has gained traction as a valuable precious metal in its own right, it doesn’t offer this kind of reputation.
Gold vs platinum: which is the more classic precious metal? There’s no contest here. Even ten-thousand years ago, rulers were creating famous gold coins using gold bullion. Platinum is an up-and-comer on the precious metal scene, but it doesn’t come anywhere near gold in terms of recognizability and class.
Best Gold Coins and Bars
Persuaded by some of the major advantages of investing in gold? Let’s walk through some of the most popular gold coins and bars. Hero Bullion sells all of these products at competitive prices, so please feel free to check out our extensive inventory by clicking the link underneath each product photo.
American Gold Eagle
The American Gold Eagle is the most classic American coin made from the most universally recognized precious metal on the planet. There’s no wondering why this coin routinely smashes records for the most gold coins sold – it’s a certified American classic.
On the obverse of this .9167 pure gold coin, you’ll find an important American symbol: Lady Liberty. She wears a gown in this artwork and walks away from a rising sun above the United States capitol. In her arms, she carries both an olive branch and a torch. Since the initial release of the American Gold Eagle Coin in 1987, this portrait has remained static on the obverse.
New editions of the American Gold Eagle also feature a new take on the classic reverse. Older versions of the coin featured an eagle in flight. In 2021, the U.S. Mint released a reimagined reverse for their most popular coin. Now, the coin features a close-up portrait of a proud American bald eagle.
British Gold Britannia
If you’re looking for a gold coin with a bit more pure gold in it, look no further than the British Gold Britannia. In many ways, the reverse of this .9999 fine gold bullion coin mirrors the design philosophy of the American Gold Eagle’s obverse. Instead of Lady Liberty, you’ll find Britannia – the feminine personification of the British Empire.
She carries a trident in one hand and the shield of Britain in the other, and she stands on top of a rocky cliff. This coin also features a standard obverse – but with a twist. For decades, the coin featured Queen Elizabeth II. Following her death, coins will now include an obverse portrait of King Charles III, Britain’s newly crowned monarch.
These coins have been an investor favorite for generations – investing in this piece of British history is always a good choice for people who want to start putting their money on gold.
Valcambi 1 oz Gold Bar
Regardless of which side of the gold vs platinum debate you fall on, there’s no denying that the Valcambi 1 oz Gold Bar is a beautiful way to invest. Valcambi Suisse is a Swiss mint known for producing high quality, very pure gold bars.
This bar is everything we like to see in a gold bar. It offers a simple obverse design featuring the refinery’s logo, as well as the weight, material, and purity (99.99%) of the bar. It also includes a serial number, which can help add a bit of security to your investment.
On the reverse, they choose to keep things simple by stamping a stylized version of their logo on the back.
Reasons to Buy Platinum
When collectors ask us to compare gold vs platinum, most people are surprised to learn about platinum’s high industrial demand and low cost of entry. Both of these factors help to make platinum an excellent option for people who want to invest in precious metals without breaking the bank on a full 1 oz gold bar.
Let’s take a look at the two main benefits of platinum below.
Industrial Demand and Use-Cases
As we continue our comparison of gold vs platinum, industrial demand is going to be a consistent theme. Industrial demand refers to the number of important industries that actually use a precious metal. Some metals, like gold, are used regularly in very few technologies.
Platinum, on the other hand, is traded both for its high rarity and its industrial usefulness. Platinum is used in hundreds of products, including medical and dental equipment, cell phones, scientific innovations, and more. In fact, one of the main reasons that catalytic converters are stolen off of vehicles is their platinum content.
For savvy investors, this means that platinum has more than just intrinsic value – it actually offers a high degree of demand from essential industries. This helps keep its prices high and makes it an attractive investment option.
Low Cost of Entry Compared to Gold
Gold vs platinum: which one is cheaper? The win here clearly goes to platinum. Platinum current trades at just under half of the price of gold per ounce. This hasn’t always been the case. There was actually a period of time where platinum was sold at a higher price than gold bullion.
Nowadays, platinum’s price has fallen quite a bit, thanks to the increasing industrial usage of palladium for some technologies over platinum. This is bad news for some investors who prefer platinum in the gold vs platinum debate, but it also means that platinum is a much cheaper way to invest in precious metals. As you grapple with the gold vs platinum debate, cost of entry should be a defining consideration.
Best Platinum Products for Investors
We’ve already gone over some of the best gold products to invest in. Once you’ve made up your mind on the gold vs platinum comparison, it’s time to pick the type of product to spend your money on. We’ll cover 2 of our most popular platinum products below: the Canadian Platinum Maple Leaf Coin and the Argor-Heraeus 5 Gram Platinum Bar.
Canadian Platinum Maple Leaf Coin
We haven’t covered this coin yet in our guide, but that doesn’t mean it’s not one of the best ways to invest in precious metals. For decades, Canada’s most popular platinum coin has been the Canadian Platinum Maple.
On the obverse, you’ll find a detailed portrait of Great Britain’s current monarch. Until recently, this was Queen Elizabeth II. If you’ve been following the news, you already know that King Charles III is now the person who rules England. You’ll note his regal portrait on later editions of the Platinum Maple Leaf.
On the reverse, the coin gets its name. You’ll see an intricate portrait of a classic Canadian symbol, the Canadian maple leaf.
Can’t decide on gold vs platinum? The good news is that the Canadian Maple Leaf is available in gold, silver and platinum.
Argor-Heraeus 5 Gram Platinum Bar
If you want to invest in platinum without spending a ton of cash, consider the fractional 5 gram Platinum Bar from Argor-Heraeus. Argos-Heraeus has developed a careful reputation for producing high quality, classic looking gold, silver, and platinum bars.
Sold at a low premium over spot price, the 5 gram bar from one of our favorite mints is an excellent choice. It features a simple obverse adorned with the mint’s stylized logo, as well as its country of mintong (Switzerland), weight, material, and purity (.9995). On the reverse, you’ll find a repeating version of this same stylized logo.
If you’re weighing your gold vs platinum options on a budget, the AG 5 Gram Platinum Bar is an easy way to build your stack without emptying your wallet.
How to Choose Between Gold Vs Platinum Bullion
Still stuck choosing between gold vs platinum coins and bars? In this guide, we’ve walked you through a few advantages of both. If you’re still having trouble deciding, we thought it might be helpful to restate a few key points before signing off.
Generally, platinum is the better choice for investors on a low budget who still want to invest in a popular, beautiful precious metal. Platinum’s high industrial demand is also great if you’re someone who wants your precious metal’s value to be pegged directly to industrial applications.
Gold, on the other hand, is highly recognizable and a clear classic. Its high price may be prohibitive for some investors, but it offers more stable value trends across its thousands of years of use as a store of value.
Final Thoughts: Gold Vs Platinum Coins and Bars
One of the first questions we get from new investors involves the comparison between gold vs platinum. Whether you’re looking to buy coins, bars, or even jewelry, choosing between these two popular options requires quite a bit of research.
Gold vs platinum: which is the best investment? The answer to this question depends on your personal preferences, although we find that investors on a budget tend to prefer platinum bullion bars and coins.
Still have questions? We have answers! Contact our customer service team any time.
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About The Author
Michael Roets is a writer and journalist for Hero Bullion. His work explores precious metals news, guides, and commentary.