How Rare is Platinum vs Gold? A Detailed Comparison

In terms of abundance in the earth‘s crust, platinum is over 30 times more rare than gold. According to expert estimates, all the platinum ever mined could fit in an Olympic sized swimming pool, while the same amount of gold could fill about three pools. This makes platinum significantly more scarce, valuable and coveted. Read on for an in-depth examination of how these precious metals compare in rarity, price, investment outlook and uses.

Platinum‘s Extreme Rarity Drives Its Value

As an investment analyst, I‘m often asked – which is rarer, platinum or gold? The numbers provide a very clear answer. Based on annual global production, platinum is around 190,000 kgs versus 3,200,000 kgs of gold. That makes gold nearly 17 times more abundant than platinum.

In the earth‘s crust, platinum is even scarcer, with an average concentration of just 0.005 parts per million compared to 0.004 parts per million for gold.

Why is Platinum so Rare?

Platinum owes its extreme scarcity to the unique geological and chemical qualities that make it very difficult to mine and extract:

• Platinum concentrations are very low in ores – often less than 10 grams per ton
• Over 70% of the world‘s platinum comes from a single region – the Bushveld Igneous Complex in South Africa
• Platinum deposits are hard to process. They require complex chemical separation and smelting.
• Platinum is rarely found in concentrated nuggets like gold, making it harder to locate and extract.

As an analyst, I find platinum‘s rarity intriguing. Unlike gold, there are very few significant platinum deposits that have been discovered across the world. This contributes heavily to its extremely constrained supply.

Annual Platinum Production vs Gold

To demonstrate platinum‘s scarcity, let‘s examine the annual worldwide production of these metals:

As you can see, gold is produced at a rate nearly 17 times higher than platinum each year. This table really highlights the relative abundance of gold.

Density and Purity – Platinum Exceeds Gold

In addition to rarity, platinum also exceeds gold when it comes to density and purity. These qualities contribute to its value.

As a pure metal, platinum has a density of 21.45 g/cm³ compared to 19.3 for gold. This makes it heavier per volume, explaining its "hefty" feel.

Jewelry platinum is generally 90-95% pure compared to 75-90% for typical gold alloys. Platinum‘s higher purity means more precious metal per gram.

For important jewelry pieces like engagement rings, I tend to recommend platinum over gold. The higher density provides better durability, while the increased purity better retains its value.

Hallmarks of Purity – What to Look For

When evaluating platinum jewelry, be sure to look for stamps indicating purity:

• "950 Pt" or "950 Plat" means 95% pure platinum
• "900 Pt" indicates 90% purity

Platinum pieces will also often have a serial number and an eagle hallmark. The eagle symbolizes the high purity levels mandated by platinum trade associations.

Platinum Commands a Higher Market Price

Given its unmatched scarcity, platinum unsurprisingly sells for a higher market price than gold. As of March 2022, platinum traded around $1,100 per ounce compared to $1,950 for gold.

Over the past decade, the platinum:gold price ratio has averaged around 0.9. This means platinum has consistently sold for about 10-20% more than gold. However, the ratio has fluctuated widely at times:

Supply and demand dynamics help explain these swings. But overall, as a professional investor, I look to platinum as the more "precious" metal commanding higher values.

Platinum or Gold – Which is the Better Investment Now?

For investors deciding between platinum or gold, my research suggests platinum may offer more upside potential over the next several years.

Key factors that could boost platinum prices include:

• Recovering demand from automakers as production rebounds
• Diminishing supplies from aging South African mines
• Substitution away from expensive palladium in catalytic converters
• Increasing investment demand – over 650,000 ounces were purchased for exchange-traded funds in Q4 2020 alone

While gold remains a reliable safe-haven asset, platinum appears poised to rally strongly from current low levels. This outlook combined with its higher purity makes a compelling case for choosing platinum over gold right now.

Platinum Supply and Production

Unlike gold which is mined globally, over 70% of the world‘s annual platinum production comes from a single country – South Africa. Most comes from an area known as the Bushveld Igneous Complex. Russia, Zimbabwe, Canada and the US are other key producers.

Where is Platinum Mined in the United States?

The US has just two primary platinum mining operations:

• Stillwater Mine – Located near Nye, Montana. Accounts for over 75% of US platinum production.
• East Boulder Mine – Located near Big Timber, Montana. Owned by Sibanye-Stillwater mining company.

These mines give North America greater supply independence for platinum compared to reliance on Russia and South Africa. But they still only provide around 3% of total global production. Expanding domestic mining capacity could help improve platinum supply stability.

Platinum vs Gold in Jewelry Settings

Platinum and gold are both seen in fine jewelry, especially for special pieces like engagement rings and wedding bands. Based on my experience, here are some key differences:

Advantages of Platinum

• Higher purity – typically 90-95% vs 75-90% for gold
• Stronger and more durable due to higher density
• Hypoallergenic for those with sensitivities
• Rare white color provides a bright, luxurious shine
• Holds diamonds securely for solitaire and pave settings
• Will not tarnish or oxidize over decades of wear

Advantages of Gold

• More affordable – gold alloy is less costly per gram
• Easier to work with for jewelry designers and craftspeople
• Wider range of colors – yellow, white, rose, etc.
• Slightly more scratch resistant than platinum

For someone seeking a high-end piece that will retain value, I would likely recommend platinum. But the choice often comes down to personal preference on color, budget and style.

The Rarity Winner is Clearly Platinum

After reviewing all the data and research, the verdict is clear – platinum is significantly rarer than gold. From geological factors that limit production to its unmatched density and purity, platinum stands alone as one of the world‘s most scarce and coveted metals.

While both metals have roles to play for investors and in fine jewelry, platinum‘s prestige is directly tied to its sheer scarcity. Gold is the more abundant precious metal, while platinum will remain in tight supply.

So when it comes to assessing rareness, platinum emerges as the obvious winner. Its rarity and distinct qualities help explain why platinum jewelry often signifies life‘s most precious moments. This insight into platinum‘s advantages can help buyers make informed decisions between these luxury metals.