The question of why gold is cheaper than platinum, it’s better not to formulate it that way, it’s better to just ask: “What is cheaper now?” Today, gold is not cheaper at all, but more expensive. Gold and platinum in their value have long competed with each other and often change. Today gold is ahead, and tomorrow, you look, platinum will again become the sprint champion. This has happened more than once. Why is this happening and how two noble metals came to such a life - we read and understand.
Who decides the platinum fate. And gold too
If we talk about Russia, the Central Bank does this every day, announcing the precious metals rate of the Central Bank of the Russian Federation. Russian prices are tied to the so-called fixing of gold, platinum and other precious metals in a special London market that sells cash metal. That's who sets the price of precious metal bullion. These daily calculations are not needed at all by jewelry enterprises, but by serious credit organizations for financial accounting.
The cost of metals of this kind consists of many factors - physical properties, application in industry and jewelry, technological characteristics and, of course, data from places of extraction of natural resources.
What do we have for platinum:
- Firstly, it is much heavier than gold - it has a higher density.
- Platinum is much more resistant to heat, oxidation or corrosion.
- Platinum, unlike gold, is almost impossible to scratch.
- It does not cause any allergies due to the highest purity of the metal.
Rotten gold, bad silver
Yes, it's all about platinum. It was in the Middle Ages, grains of gray "non-marketable" metal were found when washing gold. Platinum was then called completely offensive - "silver" or rotten gold. The most curious and creative in those days were alchemists. They could not pass by gray pieces of incomprehensible metal and began to study them carefully. The only goal of the then alchemists was to turn everything that was possible into gold. Nonsense, of course, but with platinum they also tried to do just that.
After many experiments, the Swedish alchemist finally realized that platinum is not just an independent metal, but unique and superior to gold in many ways. What he solemnly announced in 1751.
Platinum finally came into fashion and became especially appreciated in jewelry and luxurious trinkets among the European aristocracy. The French king Louis XV declared her crowned metal. In Russia, platinum has not been valued at all for a long time, which is especially disappointing, given its serious deposits on Russian territory. It cost less than silver, no products were made from it.
Platinum properties
This is a noble and expensive metal with a gray tint. In nuggets, it looks very unpresentable (like many other metals, too). But in European-class products, this is a very refined gray metal, which is difficult to confuse with anything. In an alloy with gold, platinum adds weight, solidity and sophistication to gold.
When platinum is mined, several other elements are located nearby, the so-called platinoids. This is a group of iridium, ruthenium, palladium and osmium. Their characteristics also deserve high attention: fire resistance, the highest melting point, etc. They, like platinum, are wear-resistant, very durable and resistant to almost any chemical reactions and reagents.
And then jewelers appear
It was jewelers who recognized all the wonderful properties of platinum. From an aesthetic point of view, platinum, better than any metal, sets off the brilliance of diamonds, it makes them visually larger. Not only aesthetics play a role here. As a fringing of precious stones, platinum protects them with the highest efficiency.
Platinum can produce products of the most complex and bizarre shapes due to its yet another unique physical property - fluidity. That is why gold is cheaper than platinum in terms of their physical properties.
Platinum or white gold: which is more expensive?
We will not torment readers and say right away: of course, platinum. It's all about the physical characteristics.
Platinum is all right with them: hardness, strength and wear resistance at height, nowhere better. It is found in samples 850, 900 and 950. A sample of platinum 950 is the most popular, it contains exactly 95% of metal, these are serious products.
White gold is not an independent metal at all, but an alloy of various elements, the composition of which can completely change. An alloy of gold and platinum without impurities is an excellent option. This is a soft metal, from which magnificent samples of jewelry art of the highest complexity are obtained. But the fact is that in practice most often impurities of various kinds are added to the alloy: rhodium, palladium, or even just silver. This is done only for aesthetic reasons - for the desired color of the product. As for the unique properties of pure alloy, they can be partially lost. Here is another answer to the question of why gold is cheaper than platinum.
White gold is more popular in Russia: it looks like platinum, but it costs less. In the West, high-end jewelry is preferred from pure platinum: elegant, expensive, sustainable.
Decide for yourself what you need. But if you intend to purchase something for the family inheritance collection, buy platinum.
Platinum in jewelry is not getting cheaper
The heyday of platinum jewelry came in the 18th century. Then platinum was in great fashion and, moreover, played the role of an indicator of family well-being and a high level of financial wealth. Thanks to these social collisions, we have delightful pieces of jewelry and accessories.
Today, there is a kind of renaissance of platinum jewelry. Most haute couture jewelry houses are increasingly offering platinum products. In addition, there is a persistent trend in the choice of engagement and engagement rings from platinum.
There is another old-fashioned way to use platinum to hold a gem inside. If you look under the stone from the inside in a ring or pendant, you can find a small metal dot in gray. This was done so that the stone never falls out of the frame, because platinum does not change shape, does not deteriorate and does not wear out. The difference in the weight of platinum and gold also plays a role in the sustainability of jewelry with stones. With platinum elements they are heavier.
If we take into account all the above jewelry aspects of the cost of platinum, then the question of why gold is cheaper than platinum does not seem absurd.
The method of extraction affects the cost
Mostly platinum is mined in rocks. She loves to coexist with gold, nickel and other expensive metals. Mountain ores can be of two types - primary and loose. Working with the latter is much more difficult technically.
Recently, due to technological progress, mining has become easier. Nevertheless, the features of platinum mining have not disappeared: to mine 30 grams of metal, you need to shovel at least ten tons of ore.
For a long time, the world leaders in production are South Africa and Russia - they are ahead of the rest. Canada, the USA and Zimbabwe are the next three, but at an honorable distance from the leaders. If you look, then in almost every country there are deposits of platinum. It’s all about their quantity - is there any point in extracting them if they are too few for an industrial scale?
Which metal is better for investment
The cost of platinum and gold is constantly changing, it rises or falls relative to each other. The stereotype that platinum is much more expensive than gold is still held in the minds of ordinary people. But in fact, everything has long been wrong. Gold has long been a leader in the ranking of expensive metals.
The main turning point occurred during the global crisis in 2008. Then platinum fell almost three times. But gold remained the same price, then it did not fall in price.
The use of platinum and gold in jewelry is a drop in the ocean, which determines the market value of the metal.
What really matters
Here, much more important is the difference. Platinum is used a lot in industry. And industrial technology is changing at space speed. Because of this, the value of platinum can jump on the stock waves as you like.
Another thing is gold, or rather, its archetype. Gold bars of 750 in the heads of people have always been the embodiment of power, wealth and luxury. And such associations are much more sustainable than changing technologies using platinum. In addition, the gold and foreign exchange reserve is stored in gold. This is a traditional metal for investments and investments.
If we talk about the Asian segment of investing in metals, then in Asia, gold is historically unrivaled. Therefore, it is better to invest in gold.
And in the case of buying jewelry, you do not need to pay attention to the course of precious metals of the Central Bank of the Russian Federation: buy pure platinum, you will not be mistaken.