What is Platinum?

What is Platinum?

From platinum-plated jewelry to platinum credit cards with the highest number of perks, platinum as a precious metal and as a level above gold has begun to register in the back of our minds. Platinum-plated sterling silver (Amazon ASIN #B00U24CT1M) ring is a very common symbol of love and romance, so that you might have come across someone giving it to their significant other on any romantic occasion.

Not to mention the marketing claims in the skincare industry that are bringing in platinum skin care products with the idea of combining the power of gold, silver, and bronze. After all, platinum is known for its anti-aging properties.

With increased usage in catalytic converters, drugs and magnets, platinum is another precious metal to watch out for.

So what is platinum, and why is it in the gold, silver, and bronze league?

A Crash Course on What is Platinum’

Platinum is a chemical element with an atomic number of 78 and the symbol of Pt. The nature of this metal is such that it is malleable, not at all reactive, ductile, and quite valuable. Its physical resemblance can opt for silver as it is also a transition metal. The name ‘platinum’ was also derived from the Spanish term ‘platino’, which translates to ‘silverish white’, the color of the metal.

Looking at its features, it belongs to the platinum group of elements and is believed to be a noble metal. The proof is that it has six naturally occurring isotopes (two or more atoms with the same atomic number) believed to be quite rare on Earth.  As it is highly unreactive, it can easily resist corrosion even at high temperatures.

The metal is found naturally in the form of native platinum, which is chemically not combined yet. You won’t believe it, but it occurs naturally in certain sands of the rivers.

So now that we have completed, a crash course on platinum, let’s look at why it is so popular?

The Secret to Platinum’s Popularity

Platinum has always been seen mysteriously above gold, yet its appearance is very much like silver, so much so that it is used in jewelry with sterling silver. Due to its resemblance to silver, the image created is that it can be a precious metal. What adds to this belief is the rarity of platinum since it is much rarer than other precious metals.

Its popularity rose when it reached American soil, where it captivated the public during the early 20^th century. But it wasn’t until recently, a few decades, that is the 1980s when platinum began to exceed the value of gold. It is used not only in jewelry but in skincare and cosmetic products for its antioxidant properties. Not to mention the use in making magnets and catalytic converters.

The Value of Platinum

The real question of platinum is present in its rarity and how it only forms in the alluvial sands of rivers. Throughout history, platinum has been placed at a higher level than gold. That is the reason that when your credit card score is updated, you are given a platinum card as an upgrade from gold.

With 67% of the supply coming from South African mines and Russian mines serving as the second-largest supplier, platinum is valuable for its multiple uses. Its value can be broken down to a simple demand and supply equation, where its supply is limited due to which demand has exceeded. We think gold is precious, but gold is mined 15 times more than platinum, making it a status symbol of having the king of all luxuries.

Pure platinum bars are now sold as a form of investment by organizations like Credit Suisse due to their value. So not only is it just restricted to jewelry and skincare but, it is also used in the automobile industry, gasoline, computers, chemotherapy medicines, electronics fiberglass, and even in refining crude oil.

History has also depicted that platinum was used in combination with gold by ancient Egyptians in the burial of their royalty since 1200 BC. Platinum was used with gold in hieroglyphics. If we look from a Western historical perspective, pre-Columbian Americans used platinum in a combination of white-gold to create an alloy.

Why is Platinum so Expensive?

Since platinum has such high demand and multiple uses, it is extremely popular, which is why it is also quite expensive. From a defense point of view, platinum is resistant to corrosion, highly malleable, and scratch-resistant. Since it is more durable than gold, it is more popular when it comes to usage in jewelry which is one of the reasons for why it is so expensive.

Platinum is purer, a comparison of which is given that a typical platinum jewelry will have 95% pure platinum, whereas gold jewelry will have up to 60% pure gold in 14k. Since it is more dense and durable, a platinum ring will cost more than a gold ring.

Its usage in making dental fillings and chemotherapy drugs, all of which are costly treatments, adds on to the price tag of the precious metal while resisting chemical attacks.

Of the entire platinum mined, only 34% is used in jewelry, whereas 45% is used in making vehicle emission control devices, thus keeping the air pollution under control. That is also why cars are so expensive because they used precious metals like platinum to stabilize the toxic emissions.

Our Final Thoughts

So the next time you are looking for something more precious than gold, consider getting any item with platinum in it. On the other hand, platinum bars are a great investment that is predicted to appreciate in terms of price in the future. So there is no doubt that demand will exceed the production of silver shortly due to limited reserves. You would also notice that during economic stability, platinum can cost you twice the price of gold, which is highly expensive.