Over the decades, we’ve witnessed countless cycles in bullion prices. This includes quieter markets like recent months and frenzied rallies in years past. Not only have we seen many enormous swings, but we’ve also investigated the “why” behind each move. By doing so, we’ve been able to alert clients regarding important opportunities.
Every time we look at current bullion prices, one number immediately stands out: the price of platinum. For many, many years – and most of recorded history – platinum has been more valuable than gold. Yet, remarkably, that is not the case today. The spot price of platinum is under $850 as we write this, which makes it a whopping $562 lower than gold! This provides a great opportunity to diversify your precious metals and add platinum to your portfolio.
There are numerous reasons why platinum typically commands a higher price than gold. First and foremost, it’s significantly scarcer. We would venture to say that platinum is 20-50x rarer in the bullion marketplace compared to gold.
In addition, platinum has some extraordinary properties that make it perfect for industrial applications:
- It is one of the heaviest, densest, and most rigid elements on planet Earth.
- It has a shockingly high melting point of 3215 degrees and is the least reactive metal known to man.
- One of its most attractive features is its ability to serve as a catalyst. That is, platinum can speed up a chemical reaction without physically changing in the process. Thanks to these important qualities, platinum serves a crucial role in the medical, industrial, and jewelry worlds.
- Platinum is especially critical to the automotive industry. It’s a vital component of the catalytic converter, which reduces the toxicity of car exhaust. Virtually every car made since the 1970s contains some amount of platinum.
- Jewelers also enjoy working with platinum due to its durability and malleability. It’s the ideal metal for pieces that will be worn every day, as no metal is better equipped to withstand years of constant use.
- Platinum is also used in essential medical devices such as pacemakers. As an inert metal, it will not corrode or deteriorate.
The combination of scarcity and multifaceted demand has bolstered platinum prices for decades. Ever since its discovery in 1735, this coveted metal has typically commanded a higher price than gold. In looking at 50+ years of price history, we found that platinum traded for more than gold 80% of the time. Furthermore, the difference in value between gold and platinum is often dramatic. At one point in the last decade, platinum was worth more than double the price of gold!
Given all this, we believe today’s low platinum prices represent a unique opportunity. We’re accustomed to seeing platinum sell for a 50% premium relative to gold. Nowadays, the exact opposite is true! Today’s gold-to-platinum ratio is a shocking 1.65; it hasn’t been anywhere near this since the 1970s.
One other number that jumps out: the spot price of platinum. Today’s level of approximately $840-$850 is a far cry from the 2008 peak of $2200! For added context, consider that platinum spot was at $800 in 2003 when gold was just $400 per oz!
Why is platinum so reasonable right now? Just as the auto industry has helped bolster platinum over the years, it’s also the culprit for its recent woes. Buzz about electric vehicles has resulted in a knee jerk reaction. While it’s true that more electric cars are being made, the vast majority of vehicles are still made with petrol engines containing catalytic converters. Furthermore, as countries like China and India start manufacturing more cars, they will be primarily gas-powered. Many analysts feel that the price of platinum has been unfairly punished in recent years; current pricing does not reflect true demand for this rare metal.
There’s one more reason why platinum deserves your attention. Not only are spot prices hovering around $850 as we write this, but premiums are at historically favorable rates, too. Compared to their gold counterparts, platinum coins and bars typically cost much more to manufacture and trade for a higher market premium. Nonetheless, we can now offer you one of the world’s most respected platinum coins at an exceptionally low margin over spot.
Maple Leaf coins enjoy tremendous worldwide demand thanks to their beautiful design, advanced security features, industry-leading 0.9995 purity, and universal liquidity.
We want to introduce platinum to you as a great diversification to gold.
The need to diversify is a major reason to own bullion in the first place, but it’s also important to diversify within your precious metals holdings.
We can’t emphasize enough: this combination of historically low spot prices and tiny premiums means big opportunity for you. In our many years of trading in precious metals, we cannot remember a better time to add platinum to your portfolio. While there’s no guarantee as to what will happen in the future, the right ingredients are in place today. This rare metal continues to be in strong physical demand, but you wouldn’t know it from platinum’s bargain-basement pricing.
We urge you to take advantage of these favorable conditions and secure your portfolio with platinum today!
Prices Shown Subject to Change
The pricing quoted on this page is based on the current market price for this precious metal, which constantly fluctuates and we continuously update from 7 a.m. – 5 p.m. CT, Monday through Friday.
You will be charged the price listed at the time you place your order and it is confirmed as paid. If your order was not confirmed as paid, it may need to be reviewed by our fraud team and your price will not be locked in until you speak with a Blanchard account representative.
To protect against the rare event of abnormally volatile market conditions, we reserve the right to deny pricing quoted on this website.
You will be charged the market price at the time you lock in your order with us.