Platinum is rarer than gold because it is far less abundant in Earths crust, is concentrated in fewer geographic locations, and is produced by geological processes that make large, mineable deposits uncommon. These factors, plus high industrial demand for platinum in areas like automotive catalysts and limited recycling, keep its supply much smaller than golds supply.[1]
Why platinum is less common in the ground
– Scarcity in the crust: Platinum is one of the rarest elements in Earths crust; it occurs at much lower average concentrations than gold, so there is simply less of it to find and mine.[1]
– Geological formation and concentration: Platinum originates from deep magmatic processes and from meteorite material, and it tends to concentrate in particular layered igneous intrusions and placer deposits; these geological settings are limited, so economically viable platinum deposits are rare compared with the wider distribution of gold.[1]
– Few major producers: A large share of world platinum production comes from a small number of mines and countries, historically concentrated in places like South Africa and Russia, which makes global supply smaller and more geographically constrained than golds production.[1]
How mining and production add to rarity
– Lower annual output: Global platinum mine production is much lower than gold production; estimates show vastly more gold is mined each year than platinum, which directly contributes to platinums greater scarcity in the market.[1]
– High barriers to new supply: Finding and developing a new platinum deposit is expensive and slow because suitable deposits are uncommon and often technically or politically difficult to develop.[1]
Demand-side pressures
– Industrial uses: Platinum has major industrial roles, notably in catalytic converters for gasoline engines and in various chemical and medical applications, which creates steady industrial demand in addition to jewelry demand.[1]
– Jewelry and investment: Platinum is prized for jewelry because of its density, color, and purity (many platinum pieces are 90 to 95 percent pure), which keeps consumer demand high relative to its limited supply.[3][4]
– Limited recycling: While some recycling occurs, the industrial and jewelry uses combined with complex recovery reduce how much platinum returns to the market compared with gold, which is more extensively recycled from electronics and jewelry.
Physical properties that relate to rarity and value
– Density and purity: Platinum is denser than gold and is commonly used at higher purities in jewelry, meaning more metal by weight is needed for an equivalent item, reinforcing its premium position when supply is limited.[2][3]
– Chemical behavior: Platinums resistance to corrosion and unique catalytic properties make it indispensable for some technologies, a characteristic that does not have a direct counterpart for gold and that supports demand even as supply remains constrained.[3][2]
Why perception and numbers matter
– Visible scarcity: Statements used in popular sources emphasize how little platinum has been mined compared with gold to illustrate rarity; for example, comparisons of mined volumes are often cited to show platinums much smaller cumulative production versus golds larger total production.[1][3]
– Market implications: Because supply is limited and concentrated, platinum prices can be more volatile and more sensitive to disruptions in key producing regions or to shifts in industrial demand than gold.
Sources
https://www.vulcans-forge.com/blog/a-lot-of-things-you-should-know-about-platinum
https://www.usgoldbureau.com/news/post/gold-and-platinum-density
https://hiholden.com/blogs/all/platinum-vs-white-gold
https://c6diamonds.co/blogs/news/is-platinum-better-than-gold-1