Gold has cast a spell over the world for centuries. Its acceptance over millennia as a standard of value has contributed to its enduring legacy as a global currency.
In times of crisis, investors turn to gold for its stability. Current concerns about global conflict, political uncertainty and mounting government debt have fueled a recent worldwide rush into what Wall Street calls “physical gold”— bars, coins, jewelry, and nuggets — pushing the price of the precious metal to new heights.
In the US, shoppers are snapping up gold bars at the local Costco, along with macaroni and cheese, fish sticks, and Kirkland Signature™ brand prosecco.
Apart from its transactional value, it’s easy to overlook the profound role gold has played in our world for centuries. Our obsession with the yellow metal has shaped economies, influenced cultures, and changed the course of civilization.
It has a magical quality, evoking images of luxury, prestige, wealth, power, wisdom, and enlightenment. Its ancient symbolism has been used in religious artifacts, royal regalia, and ceremonial objects, reinforcing its status as a sacred and revered material. Its warm, lustrous color is unmatched by any other metal. The Egyptians believed gold was the immortal flesh of gods.
From the search for El Dorado and the sacred sweat of the Aztec sun god, the cautionary tale of King Midas, and Jason’s quest for the Golden Fleece, to the great California gold rush of 1849, gold has been beaten into the myth, legend, and history of humanity.
Going Platinum
And yet, despite its totemic significance in our world, gold has been usurped by a mundane, upstart metal. In a remarkable feat of marketing alchemy, platinum has been positioned in the hierarchy of aspirational branding as the epitome of exclusivity and prestige.
The white metal has a relatively short and uninspiring history. European explorers seeking gold in South America called it “little silver” or “platina.” It was considered an impurity or a nuisance and discarded. Its use in jewelry, coinage, and as a standard of excellence is a more recent phenomenon.
The modern appeal of platinum lies in its rarity. The white metal is one of the rarest on Earth, about 30 times rarer than gold, and challenging to mine and extract. This rarity leads to higher production costs and, consequently, higher market prices.
The allure of platinum lies not only in its rarity but also in its physical properties. As one of the densest and heaviest metals, platinum is also exceptionally durable, resistant to corrosion, and remarkably malleable.
Brand Marketing
Its association with prestige and status has been expertly cultivated. Brands have co-opted the word to appeal to consumers who value exclusivity or the perception of exclusivity. The business world is paved with platinum.
Credit card issuers have effectively tapped into the desire for prestige while reinforcing the idea of superior quality and service. A wave of the American Express Platinum card at the airport will get you access to the Centurion Lounge, a frequently crowded haven of privilege and exclusivity.
Airlines and hotels such as American Airlines and Marriott have also embraced the marketing potential of platinum to brand their highest-tier memberships and loyalty programs, promising exclusive perks such as upgrades, VIP access, and personalized services.
Not to be left out, automotive manufacturers are designating their highest trim levels as “platinum” to signal superior features and comfort. Ford’s F-150 Platinum truck is hyped as the most luxurious truck on the market.
On a more mundane level, you can participate in the platinum experience with Cascade’s dishwasher detergent, Platinum ActionPacs™. For personal care there is Platinum Skin Care and the platinum-level effusiveness of its CEO.
For your horse, Platinum Performance is dedicated to improving horse health and performance with nutrition products.
Platinum is just about everywhere you look. The great irony here is that the perceived value of the platinum brand, as with the metal, depends on its exclusivity. Overuse and misapplication will eventually commoditize its perceived status value and consumers will move on, looking for the next yet more exclusive brand designation worthy of their loyalty.
What’s Next?
The music industry might hold a few clues about the next possible evolution in this inflationary trend.
In 1958, the Recording Industry Association of America, the trade organization that represents the music recording industry, introduced its gold-record award program for records of any kind, albums or singles, which achieved $1 million in retail sales.
By 1976, “going gold” had become commonplace. It was time to go platinum. A platinum certification was introduced for the sale of one million units for albums and two million for singles. Gold certification was redefined (devalued) to denote sales of 500,000 units for albums and one million for singles.
In 1999, platinum was caught in the inflationary spiral when diamond certification was introduced for unit sales of ten million.
Since then, individual recording artists have received special, symbolic precious metals as recognition for record sales. Raphael, the Spanish singer, has been awarded a “Uranium Disc” for 50 million albums sold. In 2017, singer Luis Fonsi received the “Plutonium Disc” from Universal Music Group in recognition of the global sales of “Despacito,” which sold more than 54 million units worldwide.
So, be on the lookout for the “Plutonium” credit card. It has status but, being radioactive, it needs a heavy, lead-lined card case to hold it. In the meantime, trust in gold.