Why Platinum is Worth More Than Gold
is one of the most precious metals known to man. More precious than
silver, rarer than gold, platinum's preciousness and relative rarity
compelled King Louis XV of 18th century France to declare it the only
metal fit for a king. Hundreds of years later, platinum is still
considered to be the most exclusive of all jewelry metals.
Platinum is rare - 30 times rarer than gold. It is found in very
few places throughout the world, mostly in South Africa, although it is
also found in Russia and Canada, which means that it often incurs
higher transportation costs than gold.
The mining of platinum is a difficult, time-intensive process.
Platinum is, therefore, more expensive to mine than other precious
metals. Ten tons of ore must be mined and processed to yield one single
ounce of finished platinum. In terms of the U.S. market, gold, which is
found in the U.S., is much easier to mine and process, and is therefore
less expensive, both in terms of mining and processing and to transport
Due to platinum’s rarity and difficulty to mine and process,
selling scrap platinum for cash can be extremely lucrative, much more
lucrative than selling scrap gold. Consider these facts:
>> Because platinum is 30 times rarer than gold, it is much more expensive than gold to purchase, making it out of reach for most. Due to platinum’s exclusivity, finding platinum for sale on the precious metals market is much less likely than finding gold. This rarity accounts for much of platinum’s value.
>> Platinum is much heavier and more durable than gold.
Gold is a relatively soft metal; 24 karat gold, the purest finished
gold, is too soft and prone to scratches, dents, and other damage to be
used in most jewelry applications and is thus rarely seen on the market. To make gold durable enough for
most applications, it must be alloyed with other metals, such as
silver, copper, or
even nickel, and thus contains less pure gold content. For example, 18 karat gold must contain 75% pure gold, while 14 karat gold must contain 58% pure gold. Platinum jewelry pieces, on the other hand, are usually 85-95% pure platinum. What this means for those who wish to sell gold or platinum is that the return will be much higher for platinum, because the precious metal content in pure platinum is nearly always higher.
>> Platinum jewelry is much heavier than gold jewelry. A piece of platinum jewelry will be around 60% heavier than an identical piece of 14 karat gold jewelry, because the amount of precious metal in the platinum piece will be significantly higher than that in the gold piece. Both platinum and gold are bought and sold based on their troy weight, which is a measure of mass. Because platinum is typically three times heavier than gold in troy weight, platinum will be at least three times more expensive than gold.
Those with platinum to sell can expect to see a much higher profit than that for selling gold. platinum’s value
tends to stay relatively static, whereas gold’s value is more closely tied to the precious metals and other financial markets. This translates to an excellent resale value for platinum. In fact, platinum bought three years ago will often resale for nearly as much as the original purchase price.
When the price of oil, electricity, and other commodities
required in the mining of platinum increase, and so does the price of
new platinum. That results in a greater demand for used platinum and
platinum scrap in the precious metals market, a demand that creates
higher profit margins for those who are interested in selling their
Depending upon where you reside, you may find it difficult to
sell your platinum to local buyers. While buyers in rural and smaller
markets may be willing to purchase gold, they may be reluctant to
purchase platinum, for fear they will not be able to resell it in their
market. If you do reside in a rural or small market, and have an
interest in selling your platinum jewelry or other platinum scrap, you
may wish to contact an online gold dealer, many of whom are also interested in platinum.
An online gold broker will assist you in selling your platinum jewelry or scrap by sending you an insured mailer, so that you can mail your item(s) back to the broker for appraisal. The broker will then offer you a price for your platinum. If you choose to accept the offer, the broker will offer you several options for payment.
If you do wish to sell your platinum to an online broker, research your options, check with the Better Business Bureau (www.bbb.org) to make sure the broker you choose is listed, and look forward to seeing a sizeable return on your sale.