Why is platinum cheaper than gold in India?

Demand Differences

• Gold has cultural and religious significance in India, especially in weddings, festivals, and as a form of savings.

• Platinum lacks this traditional value, so consumer demand is much lower compared to gold.

2.

Investment Demand

• Gold is heavily traded in jewelry, coins, ETFs, and as a hedge against inflation.

• Platinum is mainly used in industrial applications (like catalytic converters in automobiles) and less for investment, which limits its market price in India.

3.

Market Infrastructure

• India has a well-developed gold ecosystem: banks, jewelers, refiners, and importers all cater to gold demand.

• Platinum trade is niche, with fewer buyers and sellers, reducing its retail price competitiveness.

4.

Price Volatility & Global Trends

• Platinum prices are more volatile and sensitive to industrial demand, especially from the automotive sector.

• As electric vehicles (EVs) grow (which don’t need catalytic converters), platinum’s industrial demand is affected, putting downward pressure on prices.

5.

Taxation and Import Duties

• Both metals have import duties, but gold sometimes attracts higher duties or stricter import controls, increasing its price relative to platinum.

Summary:

Platinum is cheaper than gold in India primarily because demand drives price, and gold’s demand — both emotional and economic — is far greater. Platinum may be rarer, but it doesn’t hold the same financial or cultural weight in the Indian market.