Platinum: history, composition and status as a precious metal

Platinum is a precious metal which, although less well known than gold, has a fascinating history. Its use dates back several centuries, with traces of its presence in pre-Columbian civilisations, particularly in South America, where it was used in the form of jewellery.

However, it was not until the XVIIIᵉ century that platinum was truly recognised in Europe, particularly by French and Spanish researchers, who understood its rarity and unique properties. The name platina, meaning ‘little silver’ in Spanish, was given because of its resemblance to silver, although its physical and chemical properties are far more exceptional. Since then, it has been considered a precious metal of the highest order.

Platinum is a transition metal in the same family as palladium, rhodium and iridium. Its chemical composition makes it extremely dense and resistant to oxidation, unlike many other metals that corrode or tarnish easily.

Its high melting point and resistance to extreme temperatures make platinum a material of choice in specific industrial applications, such as catalytic converters in vehicles, electronic equipment and medical devices.

So investing in platinum is not just a matter of speculating on a precious metal, but also a way of securing assets in an area of high industrial demand.

The evolution of the platinum market over the last 20 years

In the early 2000s, demand for platinum was a major driver of price rises. Investors saw the metal as an excellent means of diversification and an alternative to gold, not least because of strong industrial demand.

However, from the mid-2010s onwards, a number of factors contributed to a temporary decline in prices. The platinum market was affected by a fall in industrial demand, particularly with the slowdown in automobile production in certain regions of the world, and the emergence of more affordable alternatives such as palladium, which can also be used in catalysts.

The most popular platinum bullion coins :

Here are some of the most popular and well-known coins among investors:

1. The 125th Anniversary Perth Mint 1 ounce Platinum (Australia): created in 2024 to mark the 125th anniversary of the Perth Mint, Australia's main producer of circulating coinage. This unique coin features the symbols of Australia: the koala, the kookaburra and the golden wattle, and the left profile of King Charles II. 

2. The Britannia 1 ounce platinum (United Kingdom): representing the effigy of the United Kingdom, was created for the first time in platinum in 2018, following its gold and silver counterparts. 

3. The Maple Leaf Platinum (Canada): Issued since 1988 by the Royal Canadian Mint, this platinum coin is a version of the famous gold Maple Leaf, but with a composition of 99.95% pure platinum. It depicts a maple leaf, the emblematic symbol of Canada. 

Gold or platinum: which metal should you choose for a profitable investment ?

When comparing gold and platinum in terms of investment, it is important to note that the two metals have distinct characteristics that can meet different investment objectives. Gold, as the benchmark metal, is often seen as a safe haven, particularly in times of economic uncertainty. Its stability and ability to preserve value over the long term make it a safe choice, but its returns are often more moderate than those of platinum.

Platinum is rarer than gold, making it an increasingly attractive long-term option, particularly for investors looking to diversify their portfolios with assets uncorrelated to traditional financial market fluctuations.
That said, choosing between gold and platinum depends on a number of factors: risk tolerance, financial objectives and investment horizon. If your objective is stability, gold is probably the wisest choice. However, for those who are looking for an investment with greater potential for appreciation and who are prepared to accept greater volatility, platinum could be a wise choice.