Silver vs. Platinum

Silver vs platinum

This article will discuss two precious metals: silver and platinum. We will go through the characteristics of platinum and silver, and state which of the two precious metals is better for a precious metals investor.

Platinum

Platinum is a chemical element with the atomic number 78 and symbol pt. Platinum is usually more valuable than gold, is purer, and has a higher density.

Platinum is used in dentistry equipment, catalytic converters, auto industry, and laboratory equipment and belongs to the Platinum group metals (PGM). South Africa accounts for more than 80 % of the world's platinum supply.

Silver

Silver is a chemical element with the atomic number 47 and the symbol Ag. Silver has the highest thermal and electrical connectivity, a white, soft, and lustrous metal, which is why it has many industrial applications. Due to the industrial demand for silver, it is more valuable than gold. Mexico is the largest producer of silver in the world.

Platinum vs Silver

At first glance, platinum may look silver due to its color, but it is easy to distinguish between the two precious metals with the naked eye. Both metals have gray undertones, unlike White Gold, which has a yellow and warmer undertone.

Platinum is brighter and shinier than silver, while silver has a duller appearance than platinum.

Price

Silver is one of the most affordable metals on the market and is great for jewelry. However, platinum jewelry would be a better investment if you like to wear jewelry regularly.

Durability

As far as durability is concerned, there is no contest between silver and platinum. Silver is softer than platinum and tarnishes quickly. One of the main benefits of platinum is its high melting point, due to which it doesn't need any alloys.

Usually, platinum rings consist of 95 % pure platinum and are perfect for withstanding everyday wear and tear.

Care and Wear

Care and Wear

People that have sensitive skin, opt for platinum jewelry rather than other pieces of jewelry. Platinum is not hypoallergic, so it shouldn't cause skin irritation. While most people are not directly allergic to either gold or silver, elements alloyed with them can cause skin allergies.

Platinum vs Silver: Who is Better?

Platinum is traded all around the world like gold and silver and often has a higher price than gold or silver during periods of political stability because it is a rarer metal. There are also factors that determine the price of the valuable metal:

  • Platinum is an industrial metal like silver, and it has a high demand, especially in the automotive industry.
  • Platinum mines are only found in Russia and South Africa, which can raise the price of platinum.
  • Since the auto industry relies so much on platinum, the price of platinum is determined by the production and sale of automobiles.

An investor should consider these factors, as these factors make platinum the most volatile of all the precious metals.

The price movements of silver swing between its perceived role as an industrial metal and as a store of value. This is why, in the silver market, the price of silver is extremely volatile.

While silver will trade roughly in line with gold, the demand equation/industry supply has a strong influence on the price.

The industrial demand for silver is high, which makes it a desired commodity, as it is used in superconductors, microcircuits, and the batteries market.

The price of silver is affected by its application, and it is not just used as a store of value.

Both precious metals will offer an extra layer of protection against political upheavals and uncertain economic conditions and act as a hedge against inflation.

Even a small % of precious metals in the portfolio can reduce risk and volatility. These metals also offer a negative correlation to tangible assets or financial assets.

That being said, right now, the platinum price ratio is double that of silver, so it is a more valuable metal.

The platinum price ratio is double that of silver

Conclusion

Before you make precious metals investments, you need to understand the differences between silver and platinum. It is essential for investors to also consider the factors that influence price movements for the metals before making a decision.

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