Next to rhodium at $2,600 per ounce, platinum @ $1,500 per ounce is the 2nd rarest precious metal on the planet.  When we compare it to gold and silver  only 150 tons of platinum are mined each year whereas gold is mined at the rate of 2,550 tons per year and silver 17,000 tons.  So on this scale platinum's yield is  5% that of gold.

10 tons of platinum in base ore material has to be mined to produce a single ounce, this is a strong indicator of how rare this metal really is and how much work is needed to produce it.  Platinum is a high trade commodity on the New York Mercantile Exchange NYMEX and the London Platinum Market and just like gold and silver, platinum ingots must be essayed and hallmarked.

Because platinum is a high trade commodity the price of it is always fluctuating, one month it could have a value twice that of gold and the next month just below the price of gold.

The graph below illustrates that over a 5 year period the price of platinum ascends and descends quite dramatically.  On the July 4th 2004, platinum was $774 per troy ounce  and on March 2008 it was $2,252 per troy ounce, almost 3 times as much ! In 1920 however it was much better, as platinum was over 8 times the value of gold!

note: ( 12 troy oz to the lb not 16 oz)

Platinum is a natural alloy that shines with a brighter purity than silver, it is ductile, lustrous, malleable and does not tarnish or rot.  When used for jewellery, platinum is a super long lasting metal that exudes a wonderful preciousness about it within its deep white shine, being the rarest metal in the world also means that platinum is savoured higher by all who own it.  The only downside to platinum jewellery is that it looks so much like silver that it can sometimes be mistaken for it, whereas Gold is instantly apparent.

Platinum generally comes from South Africa and Russia where there is the most abundance of it, and by abundance I still infer to a 95% less yield than gold.   South African platinum is normally sold for use in industrial applications such as PC hard drives, dentistry, vehicle catalysts and analyzers, silicone mixtures, glass manufacture and nearly all electronics, to name but a few.

Platinum is not stockpiled as is gold and silver, it is immediately utilized for industry, made into jewellery or stamped out as coins. Thus there is no safeguard against disruptions in its supply, and this is another reason why its price fluctuates so much.

Even though platinum bullion prices fluctuate drastically, if a watch or other item is made from platinum then invariably the price is fixed and will not alter...
...for example, the Patek-Phillipe Calatrava watch as seen below with its solid platinum  case will not leave much change from $30,000, regardless of the trade markets.

Platinum is often viewed as a new and somewhat modern precious metal but its antiquity is quite surprising as the South American Incas and indeed the ancient Egyptians utilized it to form much of their finest and delicate jewellery.  Even today, all platinum jewellery is meticulously hand crafted and painstakingly formed into the beautiful works of art that we see.

Platinum can be worn by almost everyone as the metal is hypo-allergic, in that it does not react to different skin types or Ph levels and with its polished brightness and durability it is indeed the coolest and strongest white metal to craft jewellery out of.  Platinum, like a diamond, is truly forever and could easily be a girls best friend !

     For the technically minded I present some scientific information about platinum:

**ruthenium, rhodium, palladium, osmium, iridium, and platinum together make up the group of six elements referred to as the Platinum Group Metals (PGM)

                                                      TO SUMMARIZE

Platinum is one of the finest, purest and indeed rarest precious metals on the planet.  It is also one of the strongest and most durable, also being one of the heaviest.  Platinum is ideal to be worn as everyday jewellery because it doesn't show much sign of wear, if any at all.  Platinum as marked either by Pt or a hallmark and contains a minimum of 95% ( .950 ) pure platinum.

Platinum has a rich white lustre which accompanies diamonds and other precious stones whilst its own color is of course quite bright on its own.  Platinum is just as popular if not more so now than gold for engagements, weddings and anniversaries.

Overall, platinum is far superior to other metals in strength, durability and brightness and fused with a diamond offers one of the most profound statements
of love, status and overall elegance.

                                                         ABOUT RHODIUM

Description and Uses:

Rhodium is ultra rare, currently about $2,600 per ounce @ Nov 2009, it is a silver-white metallic element, it is highly resistant to corrosion, and is extremely reflective. It is used as a finish for jewellery, mirrors, and search lights. It is also used in electric connections and is alloyed with platinum for aircraft turbine engines. Another use for rhodium is in the manufacturing of nitric acid and used in hydrogenation of organic compounds. Rhodium usage is dominated by auto catalyst applications where it is used together with platinum and another rare metal..palladium to control exhaust emissions.

Major sources of supply:

South Africa is again like platinum, the major source for mining rhodium, accounting for almost 60% of the world's rhodium supply.  Russia is the second largest producer, although its sales are, as with the other PGMs, volatile and subject to political intervention.

Historical prices:

High rhodium prices during the late 1980s and onwards to June 2008 when it peaked at over $10,000 per t-ounce led to a massive increase in rhodium production from South Africa.  This increased supply was primarily responsible for the decline in rhodium prices during the 1990s.  Interruptions to Russian supplies since early 1997 have helped the rhodium price to recover strongly. www.kitco.com  provides historical price charts that are updated on a daily basis.

Amended extract taken from www.kitco.com