The Price of Gold and Platinum
If you’ve been shopping for an engagement ring recently you may have noticed that a platinum ring costs quite a bit more than gold.
Considering the fact that the price of gold is currently about 8% more than platinum, why isn’t a gold ring more expensive than a platinum ring?
There are basically three reasons.
First of all, a platinum ring is made of almost all platinum (about 95%), while a gold ring is generally mixed with a variety of metals. For example, an 18 karat ring consists of 75% gold and 25% other alloys. So even if the price of platinum and gold were the same you would expect a gold ring to be about 25% less than a platinum ring.
Second, platinum is somewhat more dense than gold. Gold is 19.3/cm3, while platinum is 21.45/cm3 or about 11% heavier. So again, all things being equal, you should expect to pay about 11% more for platinum.
Third, platinum is more difficult to work with than gold, so the workmanship cost a little extra.
Is now a good time to buy platinum? Yes! Only rarely does the price of gold exceed the price of platinum. So if you’re debating about buying platinum now is about as good a price as you are going to get.