I just took a quick look at some analyses of the precious metals market and realized that many people still confuse gold, white gold, and platinum. Today, I’d like to share a few interesting things I learned.

What is platinum, exactly? It is one of the rarest precious elements on Earth, with a distribution density of only about 0.005mg/kg. In its pure form, it has a gray-white color, is shiny, very ductile, and easy to shape. What’s great is that platinum does not oxidize, does not dissolve in common acids, and has good electrical conductivity—so it is widely used in the automotive industry (accounting for more than 50% of annual production), jewelry, medicine, and many other fields.

But what makes platinum special? Its mining output is 15 times lower than gold and 100 times lower than silver. Most platinum (about 80%) is mined from South Africa, with a smaller portion coming from Russia and Zimbabwe. Because of this scarcity, its price is always closely watched.

When it comes to pricing, it’s quite interesting. Over the past twenty years, platinum has hit a peak high of 2,276 USD/ounce in 2008, but it currently fluctuates around 1,000–1,100 USD/ounce. Notably, since 2015, gold has been priced higher than platinum—which may seem strange at first, since platinum is rarer. The reason is that gold is considered a global currency and a safe-haven asset during economic instability, while platinum is more heavily affected by industrial supply and demand.

Compared with white gold, platinum is much more expensive. For the same ring, 18k white gold can be up to 41% cheaper than platinum. That’s why many people choose white gold instead of platinum for jewelry.

Recently, platinum has been opening up exciting investment opportunities. It is rarer than gold, has high price volatility (creating bigger profit opportunities), and it is an excellent substitute metal for palladium in automotive manufacturing—especially when palladium once reached 3,300 USD. In addition, the global green hydrogen trend also creates a potential market for platinum in the production of electrolysis machines and fuel cells.

There are many ways to invest in platinum—from ETFs, futures contracts, mining company stocks, to CFDs. Each approach has its own pros and cons, but CFDs are what many traders choose because they require a low investment, offer high leverage, and you don’t need to store physical metal.

Overall, platinum is still a worthwhile investment option, especially if you want to diversify your portfolio beyond traditional gold. The precious metals market always has surprises. Platinum is certainly not an easy choice, but it is full of potential for those who are willing to take on risk.