Why is gold cheaper than platinum? Who sets the price of precious metal bullion? The rate of precious metals of the Central Bank of the Russian Federation

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

The question of why gold is cheaper than platinum is better not to formulate it this way, it would be more literate to just ask: "What is cheaper now?" Today, gold is not at all cheaper, but more expensive. Gold and platinum have been competing with each other for a long time and often change. Today, gold is ahead, and tomorrow, you see, platinum will again become the sprint champion. This has happened more than once. Why this happens and how two precious metals came to such a life - read and understand.

Who decides the platinum fate. And gold too

If we talk about Russia, then the Central Bank does this every day, announcing the rate of precious metals of the Central Bank of the Russian Federation. Russian prices are tied to the so-called fixing for gold, platinum and other precious metals in a special London market that trades in cash. That's who sets the price of precious metal bullion. These daily calculationsare needed not by jewelry enterprises at all, but by serious credit organizations for financial accounting.

The cost of metals of this kind is made up of many factors - physical properties, applications in industry and jewelry, technological characteristics and, of course, data from mining sites.

What do we have for platinum:

• Firstly, it is much heavier than gold - it has a higher density.
• Platinum is much more resistant to heat, oxidation or corrosion.
• Platinum, unlike gold, is almost impossible to scratch.
• Does not cause any allergies due to the highest purity of the metal.

Rotten gold, bad silver

Yes, it's all about platinum. It was in the Middle Ages, grains of gray "non-marketable" metal were found when panning for gold. Platinum was then called quite offensively - "silver" or rotten gold. The most inquisitive and creative in those days were alchemists. They could not get past the gray pieces of incomprehensible metal and began to carefully study them. The only goal of the then alchemists was to turn everything that was possible into gold. Nonsense, of course, but with platinum they also tried to do just that.

After many experiments, the Swedish alchemist finally realized that platinum is not just an independent metal, but unique and superior to gold in many ways. What he solemnly announced in 1751.

Platinum finally came into fashion and became especially appreciated in jewelry andluxury trinkets among the European aristocracy. The French king Louis XV declared it crowned metal. In Russia, platinum was not valued at all for a long time, which is especially disappointing, given its serious deposits on Russian territory. It cost less than silver, no products were made from it.

Properties of platinum

This is a noble and expensive metal with a gray tint. In nuggets, it looks very unpresentable (like many other metals too). But in products of the European class, it is a very refined gray metal, which is difficult to confuse with anything. In an alloy with gold, platinum adds weight, solidity and sophistication to gold.

When platinum is mined, there are several other elements, the so-called platinoids, nearby. This is a group of iridium, ruthenium, palladium and osmium. Their characteristics also deserve high attention: fire resistance, the highest melting point, etc. They, like platinum, are wear-resistant, very durable and resistant to almost any chemical reaction and reagents.

And then the jewelers appear

It was the jewelers who recognized all the wonderful properties of platinum. From an aesthetic point of view, platinum sets off the brilliance of diamonds better than any other metal, it makes them visually larger. It's not just aesthetics that play a role here. As a gemstone edging, platinum protects them with the highest efficiency.

Platinum can be used to produce products of the most complex and bizarre shapes due to its another unique physical property- fluidity. This is why gold is cheaper than platinum in terms of their physical properties.

Platinum or white gold: which is more expensive?

Let's not torment readers and just say: of course, platinum. It's all about the physical characteristics.

Platinum is all right with them: hardness, strength and wear resistance are at their best, nowhere better. It is found in 850, 900 and 950 fineness. The 950 platinum fineness is the most popular, it contains exactly 95% of the metal, these are serious pieces.

White gold is not an independent metal at all, but an alloy of various elements, the composition of which can completely change. An alloy of gold and platinum without impurities is a great option. It is a soft metal, from which magnificent examples of jewelry art of the highest complexity are obtained. But the fact is that in practice, most often, impurities of various kinds are added to the alloy: rhodium, palladium, or even just silver. This is done only for aesthetic reasons - for the desired color of the product. As for the unique properties of a pure alloy, they may be partially confused. Here's another answer to the question of why gold is cheaper than platinum.

In Russia, white gold is more popular: it looks like platinum, but costs less. In the West, pure platinum is preferred for high-end jewelry: elegant, expensive, sustainable.

Decide for yourself what you need. But if you're going to buy something for the heirloom collection, buy platinum.

Platinum in jewelry is not getting cheaper

The rise of jewelryplatinum jewelry came in the 18th century. Then platinum was in great fashion and, moreover, played the role of an indicator of well-being in the family and a high level of financial prosperity. Thanks to these social conflicts, we have amazing pieces of jewelry and accessories.

Today there is a kind of renaissance of platinum jewelry. Most high fashion jewelry houses are increasingly offering platinum pieces. In addition, there is a strong trend in choosing wedding and engagement rings from platinum.

There is another old way of using platinum to fix a precious stone inside. If you look under the stone from the inside in a ring or pendant, you can find a small gray metal dot. This was done so that the stone would never fall out of the setting, because platinum does not change shape, does not deteriorate or wear out. The weight difference between platinum and gold also plays a role in the durability of gemstone jewelry. They are heavier with platinum elements.

If we take into account all the above jewelry aspects of the cost of platinum, then the question of why gold is cheaper than platinum does not seem absurd.

The mining method affects the cost

Platinum is mostly mined from rocks. She loves to coexist with gold, nickel and other expensive metals. Mining ores can be of two types - primary and placer. Working with the latter is much more technically difficult.

Recently, thanks to technological progress, mining has become easier. Howeverfeatures of platinum mining have not gone away: to extract 30 grams of metal, you need to shovel at least ten tons of ore.

The world leaders in production for a long time are South Africa and Russia - they are ahead of the rest. Canada, the US and Zimbabwe are the next three, but at an honorable distance from the leaders. If you look, then in almost every country there are deposits of platinum. It's all about their quantity - is there any point in extracting them if there are too few of them for industrial scale?

Which metal is better for investment

The cost of platinum and gold is constantly changing, it rises or falls relative to each other. The stereotype that platinum is much more expensive than gold is still held in the minds of the townsfolk. But in fact, things have not been like that for a long time. In the ranking of expensive metals, gold has long and firmly been in the lead.

The main turning point occurred during the global crisis in 2008. Then platinum fell in price almost three times. And gold remained the same price, it didn’t fall in price then.

The use of platinum and gold in jewelry is a drop in the ocean in determining the market value of the metal.

What really matters

Here is much more important here is the difference. Platinum is used in many places in the industry. And industrial technologies are changing at a cosmic speed. Because of this, the cost of platinum can jump on the stock waves as you like.

Another thing is gold, or rather, its archetype. 750 gold bars in the minds of people have always been the embodiment of power, we alth and luxury. BUTsuch associations are much more stable than the changing technologies using platinum. In addition, the gold and foreign exchange reserve is stored in gold. This is a traditional metal for investments and investments.

If we talk about the Asian segment of investing in metals, then in Asia gold is historically out of competition. Therefore, it is better to invest in gold.

And in the case of buying jewelry, you don't need to pay attention to the exchange rate of precious metals of the Central Bank of the Russian Federation: buy pure platinum, you can't go wrong.