I just realized something quite interesting about the precious metals market that many people haven't noticed. Platinum – a rare metal 15 times scarcer than gold – has been priced lower than gold since 2015. Why is that? Today, I want to share about this situation.

What exactly is platinum? It is one of the rarest elements on Earth, with a distribution density of only 0.005mg/kg. In pure form, it has a shiny gray-white color, is very ductile and easy to bend. Notably, platinum does not oxidize at any temperature, does not dissolve in common acids, and has good electrical conductivity. Because of these properties, platinum is widely used in the automotive industry (accounting for over 50% of production), jewelry, medicine, and industry.

Most platinum is mined mainly in South Africa (80% of global output), followed by Russia and Zimbabwe. The platinum production volume is up to 15 times lower than gold, and 100 times lower than silver. Due to its scarcity, platinum is often used to make high-end jewelry, especially wedding rings and engagement rings.

However, in Vietnam, the price of platinum jewelry is three times higher than the global price. For example, a platinum wedding ring with a weight of 19.625 grams is listed at 14.99 million VND (equivalent to 76.38 million VND per tael), while the global platinum price is only 914 USD per ounce (21.85 million VND). Because of this large price difference, many investors prefer trading platinum via CFDs or other online channels.

How has platinum price changed? Over the past 20 years, platinum has increased by 28.32% (from about 830 USD to 1061 USD currently). In 2008, it hit a peak of 2,276 USD per ounce, but in 2020, it dropped to 593 USD. From 1980 to 2015, platinum consistently ranked at the top among precious metals, even surpassing gold. But after 2015, gold gained the advantage as a safe haven during economic crises.

Why is gold more expensive than platinum? Gold is recognized as having an exchange value "equivalent to money," serving as an international standard measure. When the economy is unstable (US-China trade war, COVID-19 pandemic, Russia-Ukraine war), investors pour money into gold seeking a "safe haven," causing gold prices to surge (up to 2,070 USD per ounce in March 2022). Conversely, platinum is viewed more as an industrial metal, with prices depending on global supply and demand.

How does it compare to white gold? White gold is pure gold (70-75%) alloyed with other metals and coated with Rhodium. A 2mm white gold 18k ring costs about 580 USD, while platinum rings can reach up to 820 USD – more than 41% higher.

Why is platinum a good investment? First, it is 15 times scarcer than gold and still considered a safe haven during economic instability. Second, platinum’s high price volatility can potentially generate greater profits than gold. Third, platinum has high industrial applications, especially as green hydrogen trends accelerate, opening large markets for catalytic converters and fuel cell vehicles. Fourth, platinum can replace palladium (another metal used in cars), which currently costs twice as much as platinum.

How to invest in platinum? There are many ways: ETFs (such as PPLT, PLTM), futures contracts, mining company stocks (Anglo American Platinum, Impala Platinum, Sibanye Stillwater), or CFDs. CFDs are the most popular because they require low capital, offer high leverage, and do not involve physical storage.

Overall, platinum still has many advantages over gold and other precious metals. About 60% of platinum demand comes from the industrial sector, so price fluctuations often closely follow supply and demand, making it easier for investors to forecast. Despite the current complex global economy, short-term platinum investment remains a suitable choice for those seeking quick returns and portfolio adjustments according to market trends.