While some sources claim that platinum has a good resale value because of its amazing properties like durablility, other sources believe it has a poor resale value because few shops are willing to buy it back.
Platinum Tends to Have a Poor Resale Value
The main reason is because a relatively small number of people are willing to buy it. This doesn't mean you can't find a reputable buyer, but you'll need to do some searching as you explore your options.
Platinum also tends to be easy to sell in the form of bars. Similar to what's normally done with gold bars, platinum bars are typically sold with certificates of authenticity. They'll also likely have the weight and purity engraved into them.
A number of conditions, including general market sentiment, political conditions, and discoveries of additional caches of platinum are all contributing factors in the depreciation of platinum in the past decade.
Price. Platinum: Despite being nearly identical in appearance, platinum is more valuable than gold. Platinum's high price point can be attributed to its rarity and density as precious metals are often priced by their weight.
Some investors may want to prioritize stability and long-term investing. In that case, gold is likely the better option. The precious metal has a longstanding history of reliable demand which often spikes during economic downturns. On the other hand, platinum usually performs better during times of economic growth.
This is because platinum provides a sturdy grip for diamonds and gemstones to keep them in place. Unfortunately, when the jewellery is still embedded with stones, it cannot be easily sold. The stones need to be removed to sell the platinum as a scrap precious metal first.
The only disadvantages to platinum are the higher cost and heavier weight. For example, platinum is a great metal for necklaces, bracelets and rings but not earrings, because the heavy weight may pull down more on your ears and cause discomfort.
Platinum is rarer than gold, and its demand is strong across several industries. However, platinum is a highly volatile precious metal that tends to see sharp swings in its prices. Its volatility can create opportunities for profit, but there's always the chance of losing a lot of money.
1. RHODIUM: TOP MOST VALUABLE METAL. Rhodium is the most valuable metal and exists within the platinum group of metals. It is used in jewelry for a final finish on white gold jewelry.
Platinum also has poor resale value as only a limited number of shops buy it back. Besides, compared with gold jewellery, making charges, close to Rs 500 per gram, are much higher for platinum jewellery. Buyers also need to be cautious when it comes to the purity of the metal and what it is mixed with.
Compared to many metals, both gold and platinum are rare. Often, platinum is called the metal which is most precious or the precious metal that is the rarest. Every year there is fifteen times more mined gold than there is platinum. This explains the hefty price tag and the demand.
Platinum as an investment is often compared in financial history to gold and silver, which were both known to be used as money in ancient civilizations. Experts posit that platinum is about 15–20 times scarcer than gold and approximately 60–100 times scarcer than silver, on the basis of annual mine production.
HARDER, BETTER, RARER, STRONGER
For starters, gold is far more abundant in the earth's crust, making platinum rarer. Whilst 1,500 tons of gold are mined annually, only 160 tons of platinum are extracted.
Why? Because a gold, or platinum—or, better still, multiplatinum—record means financial success. These awards, given by the Recording Industry Association of America (RIAA), represent huge sales—500,000 units for gold, 1 million for platinum, 2 million or more for multiplatinum, and 10 million for diamond.
Platinum is generally valued higher than gold. This is because platinum is rarer than gold, has a higher density and is purer. Platinum rings require more platinum than gold rings require gold, which can increase the overall cost.
Due to positive macroeconomic and fundamental drivers, we expect platinum to be a profitable investment in 2023. Supply-side constraints and consumption supported by increased regulations aiming at reducing pollution in the automotive industry will tighten the market balance of the platinum market.
Platinum has a higher price, sometimes surpassing gold, while silver is much lower. Although you'll see bigger numbers with platinum, investing in silver allows you to buy a large quantity of units, increasing your chances of making a significant profit if the price goes up drastically.
The report said industrial demand for platinum is expected to increase in 2023, up by 12% year-on-year to 2.505 million tonnes, which is 26,000t below the level in 2021, the strongest year on record. Platinum investment demand could improve significantly in 2023.
The metal helps to neutralize harmful emissions in vehicles and so tighter emissions legislations and increased popularity of hybrid vehicles only puts a greater squeeze on platinum demand. Global automotive demand for platinum is expected to increase by 10% in 2023 to 3.246 million ounces, according to the WPIC.
Platinum is extremely durable and strong making it ideal for jewellery that's worn on a daily basis. It's highly resistant to stress and withstands both extreme heat and extreme cold, which means platinum jewellery will retain its good looks better than any other metal.
It is the most durable metal used to make jewellery. Platinum should last a lifetime and you should not have to reset your platinum engagement ring. Platinum is a naturally white metal that is highly resistant to tarnish.
Many people purchase precious metals like platinum as a hedge against inflation which is of real concern right now. During times of economic uncertainty or crisis, precious metals tend to hold their value much better than most fiat currencies.
The rarity of palladium and platinum may ensure an upward trend in pricing in the future. However, since palladium is 15 times rarer than platinum, it is a higher-quality option despite the expected price decline in the coming years.
Gold: The Traditional Safe Haven
Gold has long been considered a safe haven asset due to its limited supply and historical stability. It's also seen as a hedge against inflation and currency devaluation, which makes it especially appealing during periods of economic uncertainty.