Compared to Platinum, Gold Looks Kinda Dull

As good as gold. The gold standard. Pot of gold. Heart of gold.

All those axioms sound pretty good if not downright invaluable. They have even more impact when the price of gold soars to more than $900 an ounce. Fact is, gold has been coveted since the beginning of time. It certainly played prominently in the Bible, where it's mentioned on a regular basis. Throughout history, gold has been the one thing people have been willing to do most anything to get.

But what about platinum? It doesn't appear once in the Bible. That may be because it wasn't even discovered until the 1500s in Central America. Even then, it was a mystery because no one could figure out how to melt it — it needs a heat of higher than 3,200 degrees. It would be more than 200 years later, in 1751, when a Swedish metallurgist figured out how to do it. After that, it became known as the "only metal fit for a king."

Now we have platinum blonds, platinum records, platinum cards and more. Gold takes a back seat to all those. And for good reason. Platinum is 30 times more rare than gold. Like gold, platinum won't tarnish. It's substantially stronger, so when it's used in jewelry, it's better for securely holding diamonds and jewels. Many brides and grooms often choose platinum wedding bands over gold.

Investors and collectors too have been gravitating to platinum's gleam. Sales of platinum coins are strong even with them trading hands at almost $1,700 an ounce. Pricy as that may be, what if it's a comparative bargain? Consider that gold is currently trading for more than $900 an ounce. Although 30 times more scarce, platinum is selling for less than twice the price of gold. So, is it actually cheap?

Kathrin Shoenke seems to think so. She's the president of Platinum Solutions. According to her, "the platinum supply is finite. There are more and more industries depending on it. So it's a commodity that's regulated by supply and demand. It's just a no-brainer to see that the price of platinum will go up, particularly with emerging countries demanding more and more of it."

Of course, Shoenke's in the industry. She's almost obligated to say things like that. But, she's certainly not wrong about the "emerging countries" aspect. In many respects, we've been burying our heads in the sand when it comes to countries such as China.

Just 20 years ago, it was inconceivable to believe China would become an economic powerhouse and competitor. Today, it's reality. The amount of wealth in China is staggering, and the disposable income grows by the minute. As I said, many marrying couples are opting for platinum rings. Each year in the United States, there are two million weddings. In China, the number is eight million.

Shoenke also pointed to our industrial dependency on platinum. That's more true than most realize. Platinum is used in everything from iPods and flat screen TVs to Post-It notes and cancer drugs. One of the most prominent and beneficial industrial uses for platinum is used daily in automotive catalytic converters. Platinum actually absorbs and converts dangerous gases. Nothing better has been found. Ironically, that now poses a problem.

Because of the increased value of platinum, thieves are sliding under cars, sawing off the converters and selling them for between $25 and $100. Just how it's retrieved, I can't fathom. In raw form, it requires 10 tons of ore to produce one ounce of platinum. Curiously, one source for that ore is meteorites that fell to Earth. Hey, good luck in finding one of those.

The best way to obtain platinum is still in the form of coins, such as American Eagle coins, which are almost 100 percent pure. Those can be found at most good coin dealers — legally.

(Editor's Note: A JPEG visual of an American Eagle Platinum coin is being sent for your use with this column.)

To find out more about Peter Rexford and to read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

COPYRIGHT 2008 CREATORS SYNDICATE, INC.