I just learned about platinum (platinum) because I often see people confusing it with white gold. Actually, what does platinum mean? It is an extremely rare metal, accounting for only about 0.005 mg/kg in the Earth’s crust. Unlike gold, platinum is much harder to extract, and most production comes from South Africa and Russia, with extraction levels up to 15 times lower than gold.

The great thing about platinum is that it does not oxidize, does not dissolve in common acids, is very durable, and has a high luster. That is why it is widely used in the automotive industry (accounting for more than 50% of production), in high-end jewelry, in medical fields, and in the electrical industry. When I looked up what platinum means in investing, I found out that it is an industrial metal, not just a precious asset like gold.

But the interesting part is that the platinum price isn’t higher than gold the way I thought. Currently, platinum trades around 1061 USD/ounce, while gold is at 2340 USD/ounce. The reason is that from 2015 to the present, investors have shifted toward gold because it is considered a “safe haven” when the economy is unstable. Platinum, on the other hand, depends on industrial demand, so when the economy has problems, its price drops freely.

There was a time when platinum was even more expensive than gold. In 2008, platinum reached a peak of 2,276 USD/ounce, but then it was continuously sold off. In the years 2010–2015, it regained its footing at prices of 1400–1600 USD/ounce, but from after 2015 to today, gold has always dominated. I also looked up what platinum means in English—it gradually comes from “platina,” meaning small silver.

Compared with white gold, platinum is 3–4 times more expensive. A 2mm platinum ring costs about 820 USD, while 14k white gold is only 240 USD. That is why many pieces of jewelry are only coated with a thin layer of platinum rather than made of pure platinum.

In fact, platinum is currently poised for strong growth in the future. As the green hydrogen trend develops, demand for platinum in fuel cells and electrolysis machines will surge dramatically. In addition, palladium (another metal used in cars) is priced at twice the level of platinum, so manufacturers are looking for ways to replace it. In 2022, palladium reached 3300 USD/ounce, which opens up a huge opportunity for platinum.

However, it is important to note that platinum is an industrial metal, so its price fluctuates with global supply and demand and is not as stable as gold. Investors who like trading platinum often use CFDs or ETFs because they are easier than storing physical platinum. If you still wonder what platinum means and whether you should invest, the answer depends on your goals—if you want a safe haven, choose gold; but if you are looking to profit from price fluctuations, platinum has greater potential.