Platinum and gold are two recognized precious metals, valued for their distinct physical properties and scarcity. Gold is primarily sought after for its monetary history and jewelry use, while platinum is valued for its unique industrial applications. Comparing their rarity requires analyzing not only their natural abundance in the Earth, but also the practical challenges of extraction and the total quantity available globally. Analyzing the concentration in the Earth’s crust and the annual output reveals which metal is truly scarcer.
Geological Abundance: The Rarity of Platinum in the Earth’s Crust
The rarity of any element begins with its concentration within the Earth’s crust. Gold is a rare element, with an average crustal abundance estimated to be around 4 parts per billion (ppb) by weight. Platinum is also an ultra-trace element, with some estimates placing its concentration near 5 ppb, though other data suggests it is rarer.
Despite these similar crustal abundance figures, the geological conditions required to concentrate platinum into an economically viable deposit are far more restrictive than those for gold. Platinum is a member of the Platinum Group Metals (PGMs) and its deposits are typically found deep underground in specific formations, such as the Bushveld Igneous Complex in South Africa. The difficulty of finding and accessing these deposits means the amount of platinum available to be mined is far less, creating a disparity in the practical supply of the two metals.
Annual Production: Mining Output and Supply Flow
The most significant measure of practical rarity is the amount of metal extracted each year. The annual global production of gold is dramatically larger than that of platinum, showcasing platinum’s scarcity in supply flow. Gold production typically ranges between 3,000 and 3,300 metric tons annually. In contrast, the global output of platinum is only about 170 to 200 metric tons per year.
This means that for every ounce of platinum mined, 15 to 18 ounces of gold are brought to the surface. The geographical concentration of platinum mining further constricts its supply, with South Africa consistently accounting for over 70% of the world’s newly mined platinum. This reliance on one region makes the platinum supply vulnerable to political instability or power supply disruptions. Gold mining, by comparison, is geographically diversified across dozens of countries, making its annual supply flow more stable and resilient to localized events.
Economic Consequences of Scarcity
The combined factors of low geological concentration and restricted annual mining output lead to distinct market dynamics for the two metals. A primary difference lies in the above-ground stock, which is the total quantity of the metal ever mined and refined throughout history. Gold has a massive historical stockpile, estimated to be around 200,000 metric tons, accumulated over centuries of use as a monetary asset and in jewelry.
In contrast, the total above-ground stock of refined platinum is estimated at only 5 to 7 million ounces. This small inventory makes the platinum market much “thinner” and more susceptible to price volatility from shifts in industrial demand. Since platinum’s primary use is in industrial applications, particularly in catalytic converters, its price is heavily influenced by the health of the global automotive sector. This contrasts with gold, whose price is primarily driven by investment demand and its role as a safe-haven asset.