Why Is Platinum Cheaper Than Gold?

[Serendipity]

Why is platinum cheaper than gold when it’s rarer?

[5huggy]

Lack of desire! - Au is much better known and ergo trade-able! IMHO

[HelpingHands]

An idea.

Gold has the highest stock to flow ratio of the metals.

So there is a greater percentage of new platinum supply to the already existing platinum above ground.

[Stu]

https://www.kitco.com/commentaries/2017-02-07/The-46-Year-Record-of-Platinum-Gold-Ratios.html

market sentiment I suppose. It's not that long ago that platinum spot price was 2+ the price of gold. Then there's the vat in top in this country.

i understand that the Japanese were into platinum jewelery in fairly recent times, I don't know if this has tailed off recently. 

[MetalMandible]

I was always under the impression that it is the use of Palladium that plays a significant role in the relatively cheap price of Platinum.  

[Tn21]

Do any forum members see the price of PT overtaking the price of Au at some point in the future?

[Bumble]

For myself, I think it is unlikely that platinum will overtake gold. Almost half of all demand for platinum is for diesel engined cars, and these are on the way out. It is possible that manufacturers of petrol (gasoline) engined cars may switch from palladium to platinum, but this does require some re-engineering work. The other potentially large demand for platinum is as a catalyst in hydrogen fuel cell vehicles, but these are still years away from wide use, and the developers are looking for alternatives to platinum. The only real prospect for a sharp rise in platinum prices is if there are supply problems. The largest source of platinum is South Africa, and there have been numerous strikes and mine closures in recent years, so there is some chance of this.

Gold is very different. Its demand comes mainly from jewelry and from central banks as a reserve asset. Also, to a lesser extent, from investment demand. This demand does not look likely to fall any time soon, although it is price sensitive. Gold supply has been fairly constant in recent years, and it is getting harder and more expensive to find more, so we are unlikely to see a large increase in supply.

[MancunianStacker]

1 hour ago, Bumble said:

For myself, I think it is unlikely that platinum will overtake gold. Almost half of all demand for platinum is for diesel engined cars, and these are on the way out. It is possible that manufacturers of petrol (gasoline) engined cars may switch from palladium to platinum, but this does require some re-engineering work. The other potentially large demand for platinum is as a catalyst in hydrogen fuel cell vehicles, but these are still years away from wide use, and the developers are looking for alternatives to platinum. The only real prospect for a sharp rise in platinum prices is if there are supply problems. The largest source of platinum is South Africa, and there have been numerous strikes and mine closures in recent years, so there is some chance of this.

Gold is very different. Its demand comes mainly from jewelry and from central banks as a reserve asset. Also, to a lesser extent, from investment demand. This demand does not look likely to fall any time soon, although it is price sensitive. Gold supply has been fairly constant in recent years, and it is getting harder and more expensive to find more, so we are unlikely to see a large increase in supply.

True!
 

I’m sure jewelers still sell Platinum rings with a premium over gold rings, so they are doing well out of the current prices and that might continue???

[Seth]

I think it's to do with it's history, or lack of, sure it was used and even known about since before Christopher Columbus, but it has never in history been used as a form of currency, indeed it wasn't until the mid 1700's - around 1750 I think, that any real scienific studies and research was done on the metal, alchemist weren't even interested in it, they were far more interested in lead than platinum, it was even considered to be an impuriy at one point especially in gold.  And since almost half of the platinum mined today is used generally as a catalyst, mostly for vehicles in catalytic converters, and they're quickly going out of fashion, the demand for it is falling quite rapidly.  Plus there is health issues associated with platinum salts especially long term exposure.

[ZatStackz]

https://seekingalpha.com/amp/article/4324998-platinum-group-metal-demand-vehicle-emission-regulations-pt-to-pd-substitution-and

 

TLDR - palladium still has room to run and the auto industry won't be switching back to platinum anytime soon.

[SilverMike]

A couple of £5 Platinum proof 3oz Piedforts on ebay at the moment a little (relatively speaking) over spot if anyone interested, just thought id share here as there isn't a general PM opportunities thread.