The choice between silver and platinum as an investment depends on numerous factors, including your financial goals, risk tolerance, market conditions, and more. Platinum is often priced higher than gold due to its rarity, but silver is more affordable for investors on a modest budget. However, platinum can sometimes be cheaper than gold, as it is at the time of writing.
Considerations for Investing in Platinum vs Silver
Value and Price
Platinum products, such as platinum coins, are more expensive than silver coins due to its rarity and industrial demand. Both metals’ prices fluctuate based on supply and demand dynamics, economic factors, and market conditions.
Platinum has significant industrial applications, particularly in the automotive and industrial sectors, which may contribute to its long-term demand. In particular, platinum’s use in glass fiber production has increased substantially since 2020 as the price of rhodium, its substitute, rocketed to almost $30,000 per ounce.
Buying and selling silver is easy. Finding buyers and sellers for platinum may be more challenging compared to silver. This is especially true for platinum from well-known mints like the US Mint and Royal Canadian Mint. As platinum is 30 times rarer than gold, it can sometimes be more difficult to acquire a platinum coin than to sell it. APMEX sells a diverse array of platinum products and has excellent supply partnerships that ensure we can provide platinum when our customers need it.
Both silver and platinum can help you diversify your investment portfolio. Precious metals are often considered a hedge against inflation and economic uncertainties. Silver and platinum do not correlate with each other as much as gold and platinum do, so investors who are primarily interested in silver may find more diversification in platinum than gold buyers do.
Storage and Maintenance
Platinum and silver bars require secure storage. Consider the cost and logistics of storing precious metals, including insurance and safekeeping, when evaluating the suitability of silver or platinum for your investment strategy.
The choice between silver and platinum bars depends on your circumstances and investment objectives. It can be beneficial to consult with a financial advisor or precious metals specialist who can provide personalized advice based on your needs and market conditions.
The Future of Platinum vs Silver
Predicting the future of any commodity, including silver and platinum, is challenging. Factors that affect the precious metal market include industrial and investment demand, global economic and geopolitical conditions, supply, mining and recycling, and market conditions.
The Future of Silver
Like platinum, silver does have some industrial uses that may increase its demand. It is used for creating various electrical components, including switches, contacts, connectors, and circuit boards due to its electrical and thermal conductor attributes. Silver is also used in batteries, solar panels, LED and RFID chips, and photovoltaic cells. It is speculated that if we trend towards eclectic vehicles and the use of solar panels, the demand for silver will increase.
The Future of Platinum
If you have the means and patience, it may be worth holding some platinum. Many in the industry speculate that platinum will increase in demand particularly in the automotive and industrial industries. If we continue embracing the use of electric vehicles, demand for platinum may increase as it is used to manufacture hydrogen fuel cells. CME Group estimates that total demand for platinum may increase by 3 million ounces annually if favorable policy for fuel cell electric vehicles passed. It is also used in the automotive, industrial, chemical, and petroleum refining sectors.
It is important to note that these factors are subject to change, and the future of silver and platinum can be influenced by unforeseen events and circumstances. To gain a more accurate understanding of the future of silver, it is advisable to consult market analysts, industry experts, and reputable sources that specialize in commodities and precious metals before investing.
Platinum vs Silver: Jewelry
The choice between platinum vs silver jewelry depends on your priorities, budget, and aesthetic preferences. Platinum is the premium option; however, it is much more expensive than silver. Platinum may be better if durability, long-term value, and a hypoallergenic option are necessary. However, if affordability, versatility, and a wider range of design options matter more to you, silver jewelry might be suitable.