Which is more valuable: platinum or gold in 2025?

Precious metals are currently experiencing an unprecedented boom. The gold price surpassed the $3,500 per ounce mark in April 2025, while platinum, after years of stagnation, climbed to approximately $1,450 per ounce in July 2025 – an increase of over 50% since the beginning of the year. But which precious metal offers investors better opportunities? A nuanced analysis.

Platinum and Gold: Fundamentally Different Value Drivers

Gold primarily derives its value from its role as an inflation hedge and traditional investment asset. It is psychologically anchored as “crisis-proof” and attracts institutional and private investors who focus on wealth preservation.

Platinum, on the other hand, is a hybrid metal. Besides its use as jewelry and a store of value, it plays a central industrial role: catalysts in the automotive industry, implants in medicine, chemical production, fuel cell technology. This makes platinum more susceptible to economic fluctuations but also capable of disproportionate gains during upturn phases.

A key difference: Platinum is significantly rarer than gold, but this fact has not yet been reflected in the price development.

Investment Options: Which Path Fits Me?

The ways to profit from platinum price movements are diverse:

Physical possession (coins, bars, jewelry) offers maximum control but requires secure storage with associated costs. Ideal for long-term investors with space and patience.

ETFs and ETCs mirror platinum price movements and can be easily integrated into a portfolio. Suitable for beginners and savers who want to invest without physical management.

Shares of platinum mining companies offer additional leverage through company performance but carry individual risks.

CFDs and futures are suitable for experienced traders speculating on short-term price movements. CFDs allow leverage from small capital amounts, enabling both higher gains and higher losses. The volatility of platinum makes it attractive for active traders – average price fluctuations are significantly higher than those of gold or silver.

Price Trends in Direct Comparison

Historically, platinum was the more valuable precious metal. In 2014, it traded above $1,500 per ounce, while gold was cheaper. However, since 2011, a pronounced valuation gap has developed: gold continuously reached new highs, while platinum stagnated – the so-called platinum-gold ratio has been negative for over a decade.

The reason lies in weakening demand for diesel catalysts, the main market for platinum. The diesel scandal and the shift to electromobility caused this demand to collapse.

The turning point in 2025: The current platinum boom is fueled by several factors:

• Supply shortages in South Africa
• Structural supply deficit (demand exceeds production)
• Extreme physical scarcity (high leasing rates signal tension)
• Weak US dollar
• Generous ETF inflows into the investment segment
• Stable to rising demand from China and the jewelry sector

This interplay created a “perfect storm” and explained the rapid price movements.

Historical Context: From Zeroes to Heroes

Platinum as an investment is still young. While gold and silver have been minted since antiquity, platinum coin production only began in the 19th century in Russia. A short-term export ban led to oversupply and a price collapse. Recovery only came with increasing industrial demand in the 20th century.

With the patenting of the Ostwald process in 1902, the automotive use of platinum exploded. In 1924, platinum traded at six times the gold price. World wars slowed development, but from 2000 onward, platinum experienced a spectacular surge – reaching an all-time high of $2,273 in March 2008. This outperformance resulted from a combination of financial market uncertainty (financial crisis) and genuine industrial demand shortages.

The lesson: While gold is primarily sought as security, platinum is preferred during boom phases – understanding its cyclical nature can yield outperformance.

Demand and Supply in 2025: The Deficit Remains

According to projections by the World Platinum Investment Council, 2025 will see a demand of 7,863 kilounzen against an offer of 7,324 kilounzen – a structural deficit of 539 kilounzen.

Supply is expected to grow by only 1%, while the recycling segment could expand by up to 12%. Total demand is expected to decline by 1%, but the composition is interesting:

• Automotive industry: 41% of demand, +2% growth
• Jewelry: 25%, stable (+2%)
• Investments: 6%, dynamic (+7%)
• Industry: 28%, decline (-9%)

The industry decline (-9%) is attributed to US-China trade tensions. If these conflicts ease, the outlook could turn bullish.

Platinum 2025: Outlook with Risks

A neutral to slightly positive assessment seems appropriate: limited supply expansion meets stable demand. However, since July 2025, consolidation risks have increased. The massive price gains attracted speculators – profit-taking could trigger pullbacks.

Key indicators for further development:

• US dollar trend: A weak dollar supports commodities
• US-China trade relations: Influence industrial demand
• Lease rates: Indicator of market tension and future price development
• Supply disruption risks: South Africa remains vulnerable

A structural deficit is expected until 2029 – this could support platinum in the medium term.

Investment Approaches for Different Investor Types

Active traders should leverage platinum’s increased volatility. A proven strategy is trend following with moving averages (10-day and 30-day MA). Buy signals occur when the fast MA crosses above the slow MA from below; sell signals when the opposite crossover occurs. A leverage of x5 is common.

Critical: Strict risk management. Max 1-2% of total capital should be risked per trade. Stop-loss placement 2% below entry price is standard.

Example calculation:

• Total capital: €10,000
• 1% risk per trade = €100
• With x5 leverage, the position can be up to €1,000
• Stop-loss at 2% loss protects against total loss

Conservative investors can use platinum as a portfolio component. Its supply/demand dynamics and partly counter-cyclical movements to stocks make it a potential hedge. Platinum ETCs, physical bars, or platinum stocks are suitable instruments. Regular rebalancing and combining with other precious metals reduces volatility risk.

The exact portfolio share should be determined individually based on risk appetite and time horizon.

Conclusion: Gold or Platinum?

There is no one-size-fits-all answer. Gold is the safe choice for inflation protection and wealth preservation – psychologically anchored, widely accepted, stable upward trend.

Platinum is the opportunistic choice for investors who recognize cycles and seek outperformance. Lower price-to-consumer ratios compared to gold suggest long-term appreciation potential, but price fluctuations are significant.

Optimal is a combination: gold as a core for security, platinum as a tactical addition for outperformance during growth phases. The current supply shortage and economic outlooks in China make platinum interesting in 2025 – but only for investors with risk tolerance and patience for the medium-term development.