Will Platinum Surpass Gold’s Value Again in 2021?

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on telegram

Over the past few years, there have been multiple people showing an interest in platinum as an investment. For some, the value of this precious metal should be much closer to gold’s price. Keeping that sentiment in mind, one has to wonder if such an outcome is even feasible 

Platinum Deserves More Love

In the precious metal sector, gold and silver tend to get all of the attention and headlines. Not entirely surprising, as they are the most commonly sought after metals. There is also the ongoing “link” between gold and silver in the price department. Platinum is absent from virtually all of these discussions, even though it is a rather prominent precious metal as well.

Unlike gold, platinum’s applications are more widespread. In the industrial segment, platinum is used for producing and manufacturing numerous goods. This includes jet planes, engines, and any other item requiring stability at higher temperatures. Gold is not suited for that approach, and it would make those items far too expensive to boot. 

Platinum is well-suited for combustion parts. This is due to its ability to act as a catalyst during a chemical reaction, as well as the metal’s overall density. Other areas where platinum is commonly found includes glass manufacturing and even dental materials. Many people are unaware of how widespread this metal really is. 

Considering how high the demand for platinum really is, one would expect its value to be higher than what it is today. After all the metal can be found in over 15% of all manufactured products worldwide. Even so, it has half the value of gold, or slightly less. To the astute observed, this seems rather unfair.

Things can be Very Different

Even tough platinum doesn’t get the most headlines, its price certainly warranted optimism in 2008. At the time, it was valued at over $2,000 an ounce. Gold has only reached those levels earlier this year, and failed to sustain its position there. This was not the first time platinum went through a major price surge either. 

Source: MacroTrends

However, since 2008 the price of this metal has continued to drift lower and lower. Part of the reason is the 2015 scandal involving platinum. More specifically, the Volvo emission scandal made its mark on this industry as well. A bit unfortunate, as the metal itself is not to blame for how it is used – or abused – by manufacturers. 

All of this makes one wonder if platinum’s value will ever hit that $2,000 an ounce mark again. It is not impossible by any means. Some analysts predict a massive surge next year, although it remains to be seen if that impacts the price at all. For now, it remains an interesting investment to watch, and perhaps add to one’s portfolio.

Leave a Comment

Your email address will not be published. Required fields are marked *

our free Newsletter will be the best money you never spent.
  • Packed full of insider leaks, news, and articles from the biggest in the crypto and commodities industries.
  • Buy the rumor, sell the news? The Vaultoro emails highlight credible rumours before they become news.
  • You can unsubscribe at any time but we don’t think you will want to.
Vaultoro buy and sell gold bullion with bitcoin and crypto
Time for a new experience

Please choose