Throughout history, investors have flocked to precious metals like gold and platinum during tough economic times and high inflation. These precious metals are tangible, have a fixed amount and can be used in various industries.
Gold is used in mobile phones, batteries and jewelry. Platinum is used in electronics but has a greater variety of uses. It's the bedrock for many resources, such as medical devices and solar panels.
Investors can accumulate both precious metals but which one is better? This guide provides information about the future of gold vs. platinum, alternative precious metals and how to easily create a precious metals IRA.
Side-by-Side Comparison of Gold and Platinum
Here’s a quick side-by-side comparison of investing in gold vs. platinum:
| Aspect | Gold | Platinum |
|---|---|---|
| Type of Investment | Tangible asset (physical or ETF) | Tangible asset (physical or ETF) |
| Risk Level | Generally considered lower risk, stable over time | Higher risk, more volatile due to its industrial use and smaller market |
| Returns | Historically has steady growth, especially in economic crises | Can be more volatile, with high upside but also significant downside |
| Liquidity | Highly liquid, can be bought/sold globally with ease | Less liquid than gold, smaller market and less demand |
| Volatility | Lower volatility, driven by geopolitical factors, inflation, etc. | Higher volatility, influenced by both economic conditions and industrial demand |
| Income Generation | No income unless investing in gold-backed ETFs that pay dividends | No income unless through platinum-based ETFs or mining stocks |
| Diversification | Acts as a hedge against inflation and economic uncertainty | Less commonly used for diversification but can be used as a hedge in some cases |
| Inflation Hedge | Strong inflation hedge, maintains value during economic downturns | Can act as a hedge, but more influenced by industrial demand than economic crises |
| Investment Horizon | Long-term wealth preservation, safe haven in crises | Better for medium-term investors looking for higher returns or exposure to the auto industry |
| Initial Cost/Access | Can be expensive, but gold is generally easier to access in smaller amounts | Typically more expensive per ounce than gold and harder to buy in small amounts |
| Taxation | Capital gains tax (depending on jurisdiction) | Capital gains tax (depending on jurisdiction), potentially taxed at a higher rate in some places |
| Market Timing | Less sensitive to short-term market fluctuations, more driven by global trends | Sensitive to shifts in industrial demand (e.g., automotive, jewelry) and supply fluctuations |
>> Learn more about gold's historical returns and future outlook
Deep Dive into Gold and Platinum
Lets take a deeper look at these two investments.
Utility
Gold and platinum have uses outside of jewelry and currency. Gold is used in electronics, dentistry and other industries since it's a good conductor of electricity.
It doesn't corrode, which makes it a key component of semiconductors, batteries and mobile phones. It might be surprising, but you could own a small amount of gold in your mobile phone.
Platinum is much rarer than gold and it has a greater utility as well. It's frequently found in catalytic converters and solar panels. Platinum is a heavier metal and less resistant to chemical reactions compared to gold. For these reasons, it's frequently used in medical devices like pacemakers and anti-cancer drugs like cisplatin.
Which is the Best Hedge Against Inflation?
Platinum and gold have been used as a store of wealth and as a hedge against inflation for years. However, each metal has unique properties and is influenced by numerous factors. Platinum is heavily affected by changes in the automobile market, while changes in the semiconductor industry impact gold prices.
Environmental sustainability laws also contribute to price movements in platinum. With more countries and states pushing for green laws, this trend can make platinum a safer choice than gold.
Gold has been used as currency, returning 25% from 2007-2009. During this same time, platinum had a negative 22% return. Gold is used in recession-resistant industries like dentistry, medicine and electronics. The gold market is more established and liquid, meaning there is less price volatility and illiquidity.
Since platinum is rarer than other precious, it can be more resistant to inflation compared to other metals. At the same time, this precious metal's rarity makes it harder to trade since it requires more effort to mine it.
Future Outlook
Gold
Gold prices have surged in 2025, reaching unprecedented levels above $3,100 per ounce. This surge is primarily driven by investor concerns over U.S. trade policies, particularly tariffs imposed by President Trump, which have heightened demand for gold as a safe-haven asset. Major financial institutions, including Goldman Sachs and Bank of America, have revised their gold price forecasts upward, with Goldman Sachs projecting prices to reach $3,100 by the end of 2025. Looking further ahead, analysts anticipate that gold prices could continue to rise, potentially reaching $3,500 per ounce within the next two years, driven by sustained demand from central banks and investors seeking refuge from economic uncertainties. However, some caution that increased gold production and potential shifts in demand could lead to price corrections in the longer term.
Platinum
Platinum prices are projected to experience fluctuations over the next few years. In 2025, prices are expected to trade between $880 and $1,250 per ounce, influenced by industrial demand and market conditions. Looking ahead, forecasts suggest that platinum will remain in deficit from 2025 to 2028, with annual deficits averaging around 550,000 ounces, approximately 7% of demand. By 2026, prices are anticipated to fluctuate between $987.88 and $1,205.00 per ounce, depending on supply and demand dynamics. Overall, the platinum market is expected to face supply constraints, potentially supporting prices within the projected ranges.
Best Alternative Precious Metal Investments
Besides gold and platinum, here are two other precious metals that could be worth investing in.
Silver
This precious metal can be used in various industries. Steep silver shortages may lead to a price increase over the next five years.
New government regulations, like the Inflation Reduction Act, are likely to increase demand. The Inflation Reduction Act may elevate the importance of solar panels, which would positively impact silver since it's a key component of solar panels.
One simple way to buy silver is via 1-ounce coins like the American Silver Eagle. Each silver eagle coin is made of silver mined in the U.S. and is guaranteed by the U.S. government.
Copper
Copper is widely used in electrical wiring and construction, as well as in kitchen appliances, jewelry, railings, and doors. Its importance in the industrial industry helps the metal generate demand, but it is more volatile than most precious metals.
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How to Buy Gold and Platinum in a Precious Metals IRA
Another benefit of using the partners mentioned here is that they're precious metals IRA custodians. You can use self-directed IRAs to invest in precious metals on a tax-deferred or tax-free basis.
Per the IRS, a third-party custodian must manage your precious metals held in an IRA on your behalf. Your custodian can keep track of your basis and gains and report necessary paperwork to the IRS. They can keep you updated on any IRA rules and help you avoid penalties like those that occur for not taking RMDs.
Is Gold or Platinum the Better Investment?
Investors can choose from many precious metals, including gold and platinum. Gold has been a traditional safe haven asset and is arguably the most famous precious metal. Platinum is 30 times rarer than gold and has more industrial uses, especially when it comes to the auto industry and healthcare. Platinum has more severe shortages than gold, which can drive up its price. However, gold has had a greater long-term return compared to platinum. Approach gold and platinum investing with a long-term mindset and know your investment goals and risk tolerance.
Frequently Asked Questions
Which metals are 30 times rarer than gold?
Platinum and palladium are 30 times rarer than gold.
How much platinum is in a catalytic converter?
Each catalytic converter has about 3 to 7 grams of platinum.
Why is platinum not as popular as gold?
Platinum is more expensive and rare than gold. However, its scarcity and the difficulty of selling platinum compared to gold make it the less popular precious metal. Platinum is more popular than most precious metals.
