Gold has always been a symbol of wealth and has been used as an investment option. Every household in India prefers to have gold as jewellery. Platinum, on the other hand, is regarded as a modern status symbol, often associated with luxury and exclusivity. Many assume that platinum is always more expensive than gold because of its rarity. But is that really true? Let’s break it down.
In this blog, we will dive into the key difference between platinum and gold and will tell you which one is more expensive and why.
Is Platinum More Expensive Than Gold?
While platinum is 30 times rarer than gold and more difficult to mine, it is currently cheaper than gold in global markets. Here’s why:
- Rarity vs. Demand: Platinum is rarer, but gold enjoys higher demand worldwide, especially in jewellery, investments, and central bank reserves.
- Industrial Sensitivity: Platinum’s price is heavily linked to industrial demand (especially in automobiles for catalytic converters). If demand falls, prices dip quickly. Gold, however, is considered a “safe-haven asset” — investors flock to it during uncertainty, which keeps its value higher.
- Market Dynamics: Global gold prices have consistently stayed above platinum in recent years, despite platinum being harder to extract.
So, while platinum is more exclusive, gold is usually more expensive per gram.
Difference Between Platinum and Gold
The key differences between platinum and gold are as follows:
| Particular | Platinum | Gold |
|---|---|---|
| Availability | Platinum is rarer than gold, hence, not easily available. | The availability of gold is comparatively higher than that of platinum. |
| Colour | The colour of platinum is white or silvery. | Gold is generally yellow. |
| Durability | Platinum is more durable than gold and is a very hard metal. | Gold is comparatively softer and prone to scratches. |
| Price | The price of platinum is generally cheaper than that of gold. | Gold is more expensive than platinum. |
| Tradability | Limited investment options, less liquid. | Gold can be easily traded among investors. |
Platinum vs Gold: Which is more durable?
When it comes to durability, platinum clearly outperforms gold. Platinum is denser and stronger, which means it resists scratches and daily wear better than gold. Over time, platinum maintains its shape and quality, while gold, especially in higher purity forms like 24 carat, is softer and more prone to bending, scratching, and losing its finish due to friction. In short, if durability is your priority, platinum jewellery lasts longer and requires less maintenance than gold.
Should You Invest in Platinum or Gold?
In India, gold has always been the traditional choice of investment. It is trusted, widely accepted, and offers both liquidity and long-term appreciation in value. Platinum, on the other hand, is less common as an investment but has the potential to deliver higher returns during favorable market conditions.
Platinum prices tend to be more volatile because they are closely tied to industrial demand, making it more suitable for investors seeking short-term opportunities. Gold is comparatively stable and continues to be the preferred option for those looking for long-term security and steady growth. Ultimately, the choice between platinum and gold depends on your financial goals and risk appetite.
Eligibility Criteria for Platinum and Gold Loan
The eligibility criteria for taking platinum and gold loan in India are as follows:
- The individual must be 18 years of age.
- A fixed income is not mandatory for securing a loan against gold or platinum.
- Having a good credit score is not mandatory for taking platinum and gold loans.
Read Also: List Of Best Jewelry Stocks in India
Conclusion
Platinum is one of the rarest and most valuable metals in the world, known for its durability and density. However, despite its exclusivity, gold continues to hold stronger demand globally and is generally more expensive. Gold is widely accepted, easily available, and deeply rooted in tradition, while platinum stands out for its strength, rarity, and modern appeal. Both metals can serve as investment options, but the right choice depends on your goals and risk appetite. It is always advisable to consult a financial advisor before making an investment in gold or platinum.
Frequently Asked Questions (FAQs)
Is platinum more expensive than gold?
No. Although platinum is rarer, gold is generally more expensive because of higher global demand.
Which is more durable, gold or platinum?
Platinum is more durable than gold because of its density and scratch-resistant nature.
Can I take a loan against platinum?
Yes, there are various NBFCs and financial institutions that provide loans against platinum.
Why is gold more valuable than platinum despite being less rare?
Because gold has higher investment demand, cultural value, and acts as a safe-haven asset.
Is platinum also measured in karats?
No, unlike gold, platinum is not measured in karats; it is expressed as a percentage. For example, a 950 Plat is considered that the platinum is 95% pure platinum.
