Gold prices have recently hit an all time high. At $1,400 per ounce, the price of gold is closing the gap on platinum prices. While platinum jewelry has long been prized among admirers of jewelry, many people have opted for less expensive options. Now that gold and platinum are relatively similar in price, people have been paying the small difference to purchase higher quality platinum jewelry.
The direct correlation between rising gold prices and platinum jewelry sales has been helping jewelers make a hefty profit. Dan Gordon, a jeweler in Oklahoma, said, “Gold is selling platinum now. The price of gold is selling platinum. Platinum sales have surged in our store.”
Gold was often the most expensive jewelry that people were willing to spend their money on. Now that the difference between gold and platinum jewelry is minimal compared to what it used to be, jewelers are finding that it is easy to encourage buyers to take that extra small leap.
Platinum jewelry has traditionally been more expensive than gold jewelry because it is a rarer precious metal. It is also a high quality metal that is used in its pure form when worked into jewelry pieces. Platinum doesn’t tarnish and is, therefore, likely to last longer than gold. It can handle years of polishing.
Gold jewelry has always been a more popular choice than silver jewelry. Now that gold prices are rising much closer to platinum prices, platinum jewelry is being chosen over gold, taking out both silver and gold sales.
Interestingly, platinum is gaining momentum in the realm of investment, whether through jewelry or platinum bullion bars or certified bullion coins. While gold remains the most popular precious metal investment, gold prices are shedding more light on platinum investments.
The recent economic recession has many investors turning to precious metal investments in order to diversify their financial portfolios. Solid assets are seen as a safe hedge against inflation and the resulting weakening currency.
Gold has always had an inverse relationship with the dollar. Investors have taken notice. As a result, precious metals in general have been put in the limelight. As gold prices close in on platinum prices, many investors have been opting for platinum. While platinum has a shorter history than gold in the financial world, jewelers and commodity experts have taken notice of its rise in popularity.