Does platinum grow in value?

As demand for platinum grows, the intrinsic value of the precious metal could grow with it, and rapidly. In other words, it is becoming increasingly difficult for inflation to harm the value of platinum. In fact, it can become a store of wealth in inflationary times. We tend to think that platinum is more expensive than gold, which is why platinum credit cards have a higher status than gold and that is why, in the world of album certification, platinum (one million units sold) ranks higher than gold (half a million units).

For Wilma Swarts, metals director of the platinum group (PGM) at Metals Focus, the increase in Chinese consumption is likely to have little influence on a market that already has a surplus. The company's comprehensive overview of the precious metals sector continues to indicate that, while remaining modest at this time, growth in the automotive and hydrogen sectors has supported investment. In the document, Alison Cowley, from the company, pointed out that the pandemic had affected the price of hard platinum, since the closures due to pandemic lockdowns had affected the automotive, jewelry and industry sectors, leading to a lack of demand for this metal. The extensive industrial use of platinum and its partial replacement in the automotive industry will make the metal more interesting in the long term.

Platinum is a less liquid investment market than gold or silver, but high price volatility can generate greater returns for investors. In its current trajectory, platinum will be at half the price of gold sometime in the next fortnight. Industrial demand for platinum is influenced by different factors, such as gold and silver, which affect their relative performance.