Platinum is valuable due to a combination of its extreme rarity, unique and indispensable physical properties, high industrial demand, and the difficulty and cost of mining and processing it.
Platinum is also usually more expensive than gold. Why is platinum more expensive than gold? More than 1,000 tons of gold are mined every year, but only a little over 150 tons of platinum are mined in a year. This scarcity makes platinum more expensive than gold most of the time.
As of early January 2026, the price for 1 kilogram (kg) of platinum fluctuates but is roughly in the range of $69,000 to over $110,000 USD/AUD, depending heavily on the dealer, market spot price ($69,407/oz USD reported by JM Bullion, ~ $2,500 AUD/oz by Guardian Gold as of Dec 2025), premiums, and if buying physical bars, with Australian dealers showing ~AUD $110,000 for 1kg bars.
Gold offers stability and liquidity as an investment; platinum, on the other hand, is more volatile and tied to industrial demand. Both attract similar GST and capital gains tax, with hallmarking at 22K/24K for gold and 950 for platinum. Platinum is more durable and scratch-resistant but less liquid than gold.
However, a single, high-carat, high-quality diamond can have a much higher overall cost than the platinum metal used in a piece of jewellery, depending on its specific characteristics (the 4 Cs: carat, colour, clarity, and cut).
But why do jewelers not like platinum? The answer lies in its unique properties that make it both a prized and challenging material to work with. Platinum is significantly denser than gold, making it heavier and more difficult to shape. This density also causes tools to wear down faster, increasing costs for jewelers.
Each way brings different costs and risks to consider, but platinum's range of bullion investments is more limited than gold or silver, because of both the precious metal's much smaller annual mine output and its much greater use by industry and technology.
If you invested $1,000 in gold 10 years ago (around late 2015/early 2016), your investment would likely be worth significantly more today (late 2025), potentially in the range of $2,000 to over $3,000, reflecting substantial price appreciation, though less than the S&P 500 but outperforming during certain periods of market stress, acting as a hedge against uncertainty, with returns varying based on exact entry/exit points and premiums/spreads.
Holdings in precious metals such as gold, silver or platinum are considered to be capital assets, and therefore capital gains may apply. When it comes to tax purposes, the IRS classifies precious metals as collectibles, and thus they may potentially be taxed at the maximum collectable capital gains rate of 28 percent.
The price of platinum in Australia varies by dealer and product, but generally hovers around A$3,300 - A$3,400+ per ounce for spot/bullion (like ABC Bullion), while physical products have a premium, with 1oz bars selling for around A$3,500 - A$3,900 and smaller bars/coins priced higher per gram due to manufacturing, showing dynamic rates influenced by global markets.
Platinum prices drop due to reduced industrial demand (especially for diesel cars after the VW scandal), a stronger U.S. dollar, general economic slowdowns impacting manufacturing, profit-taking after price rallies, and long-term shifts toward electric vehicles (EVs) reducing catalytic converter needs. While supply constraints exist, weaker industrial outlooks, particularly in auto and chemicals, and increased PGM efficiency (using less platinum) also weigh on prices.
Platinum has a range of uses, including electronics, automotive industry, dentistry equipment, jewellery, and bullion. The biggest use of platinum however is as a catalyst. Catalysts are materials that speed up chemical reactions and reduce the energy needed to convert a substance.
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 generally cheaper than gold due to market dynamics, industrial demand, and historical factors that influence its price. Despite being rarer than gold, platinum's price fluctuates differently, making it a more affordable precious metal.
Platinum's rarity and density contribute to its resell value. Since platinum jewelry retains its weight over time, its value often remains strong.
Investing $1,000 in Coca-Cola (KO) stock 20 years ago (around early 2006) would have grown to roughly $6,000 to $8,000 by late 2025, assuming reinvested dividends, but it significantly underperformed the S&P 500 index, which would have turned $1,000 into about $20,000 over the same period, highlighting that while Coca-Cola offers stability, diversification and broader market index funds often yield better long-term returns.
Yes, gold is showing strong upward momentum, hitting record highs in late 2025 and early 2026 due to global economic uncertainty, central bank buying, inflation concerns, and the search for safe-haven assets, with many analysts forecasting continued strength into 2026, though with potential for volatility and corrections. Major banks like J.P. Morgan predict prices could reach $5,000-$5,400/oz by late 2026, while some extreme forecasts suggest much higher targets, driven by long-term trends like diversification away from the dollar.
If you invested $100 in Bitcoin 10 years ago (in late 2015) when it was around $330 per coin, you would have owned about 0.303 BTC. At today's price of $102,000 per Bitcoin, your investment would now be worth $30,906. That's a 309 times return over 10 years, turning a hundred bucks into over thirty thousand dollars.
Which Precious Metal Should I Invest In?
Over the past 12 months, platinum has seen the kind of extraordinary value increase that we last observed nearly 20 years ago—during the 2008 financial crisis. Since the start of 2025, platinum has appreciated by more than 77%. The big acceleration began during June, with consistent gains throughout subsequent months.
For people with sensitive skin, platinum is a blessing. Most gold jewelry contains alloys like nickel, copper, or zinc, which can cause rashes, itching, or allergic reactions. Platinum, however, is 95% pure, making it one of the safest metals for everyday wear.
For large-scale investors then, gold bars offer the cheapest option normally. For investors who prefer smaller units however, gold coins may be a better choice. part-selling which is often an effective way of getting a maximum return on investment.
As of early January 2026, the gold price in Australia per gram (24k) fluctuates, but you're looking at roughly AUD $215 to $265 per gram for spot/general, with actual buy/sell prices varying by dealer and product, such as around $214.81/gram on Market Index or higher for retail bars from places like ABC Bullion. Always check live dealer sites like ABC Bullion or Melbourne Gold Company for the most current buy/sell rates for specific products.