The current price of platinum is lower than the price of gold. This situation is actually not the norm. In the past 30 years, the price of platinum has been higher than the price of gold most of the time. From many perspectives, the investment value of platinum is not inferior to gold, especially when the current price is relatively low. There are five reasons why platinum is more attractive than gold. First, platinum is actually rarer than gold. Platinum production is less than 250 tons per year, mostly from South Africa and Russia. The annual output of gold can reach 2,800 tons. And the extraction of platinum is more difficult than gold. It takes 10 tons of ore to produce 1 ounce of platinum, while 3.3 tons of ore can produce 1 ounce of gold. Secondly, look at the demand side. While both gold and platinum have industrial applications, platinum is 11% denser than gold, making it more widely used. The third reason is historical perspective. In February 2008, the price of platinum was US$1,205.7/ounce higher than the price of gold, but it is now about US$190/ounce lower. Judging from the past 28 years, the price of platinum has been higher than the price of gold for 25 of the entire years, so the current situation of lower platinum prices is actually very abnormal. Reason four, liquidity. In the futures market, gold is more liquid. The most active contract in Comex gold futures contains 100 ounces of gold, and on a quieter day, trading volume can reach 100,000 lots. On a busier day, the transaction volume can reach 3.5 times. Platinum is much less liquid. The CME platinum contract includes 50 ounces of platinum, with an average daily trading volume of 15,000 lots, which is a little more than double. When the price is rising, the low liquidity of platinum can be revealed, and it does not take too much buying to push the price of platinum up. Of course, the reverse is also true. So, looking at historical volatility, platinum is more volatile than gold. Platinum is not very popular at the moment and this could be a good opportunity to buy. Reason five: market sentiment. The global economic slowdown has caused commodity prices for industrial applications to fall, and both gold and platinum prices have fallen. However, due to different liquidity, the price declines of the two have diverged. But eventually, fundamentals will improve and platinum prices will recover faster than gold prices, given the different liquidity conditions.