Gold and silver are usually the first things people ask about when they enter our stores. They are familiar, widely recognized and easy to understand.
Platinum is different. It is rarely the starting point for most buyers and is often completely overlooked.
Why platinum has traded below gold
Platinum is rarer than gold and harder to produce, but for years it has traded at a lower price.
Much of this can be explained by the use of individual metals.
Gold is mainly seen as a store of value. It is held by central banks and often performs well in times of uncertainty.
Platinum has a more important industrial role. It is used in sectors such as automotive manufacturing and medical technology, so its price is influenced not only by investors, but also by economic activity in general.
Because of this, platinum does not always follow the same price trends as gold.
What's changing in the market
One of the main changes in the platinum market concerns supply.
Most of the world's production comes from South Africa, where mining can be affected by labor challenges and infrastructure limitations. Recycling helps, but it has not been enough to close the gap entirely.
In recent years, demand has outstripped supply. This type of imbalance doesn't always lead to immediate price rises, but it generally tends to support prices over the long term.
Why some investors say it's undervalued
When people say that platinum is undervalued, they often compare it to gold.
In the past, platinum was often valued higher than gold per ounce. In recent years, this relationship has reversed, with gold rising significantly.
For some investors, this gap stands out clearly. This doesn't necessarily mean that platinum should become more expensive than gold again, but it does raise the question of whether the current price differential fully reflects the differences between supply and demand.
How platinum fits in alongside gold and silver
Most buyers are not looking to replace gold or silver with platinum. Rather, it's about adding something different.
Gold is often considered the foundation of a precious metals portfolio. Silver tends to follow industrial demand more closely and can be more sensitive to price variations.
Platinum lies somewhere in between. It has both industrial use and investment interest, which means it can behave differently from the other two.
For this reason, some investors choose to hold a smaller quantity of platinum as part of a more diversified package.
Buying physical platinum in Canada
Like gold and silver, platinum is available in coin and ingot form.
One of the most widely recognized options is the Royal Canadian Mint's Platinum Maple Leaf. These coins have a purity of 0.9995 and are widely accepted, which can facilitate their purchase and resale.
As with other precious metals, the price is based on the world market, plus a premium depending on the product.
So where does platinum fit in for you?
Platinum isn't always the first metal people think of, but it usually comes back more often once you understand how different its behavior is from that of gold and silver.
Between a more limited supply, strong industrial demand and its current price relative to gold, it's easy to see why more and more people are starting to take an interest.
If platinum intrigues you, the most useful starting point is to look at current prices and what's actually available on the market.
You can drop by any of our 18 locations or check our current online listings to get an idea of what's available.
