Is buying platinum worthwhile? Why the underrated precious metal will become interesting again in 2025

The precious metals market is currently showing its best side: Gold is trading above $3,300 per ounce, and silver has surpassed the $38 mark. But while these two heavyweights dominate the headlines, platinum is experiencing a quiet comeback – and it might be worth taking a closer look to see if buying platinum makes sense.

The Success Story of 2025: Why Platinum Is Suddenly Gaining Momentum

In July 2025, platinum is trading at around $1,450 per ounce – an impressive increase of over 50% since the beginning of the year, when the price was just below $900. This comeback is no coincidence but the result of a perfect storm of several factors:

• Extreme physical scarcity: Lease rates are at record highs, signaling shortages in the physical market
• Structural supply deficit: Mining – especially in South Africa – cannot meet the rising demand
• Geopolitical uncertainty: Tensions are affecting the global raw material supply
• Surprisingly robust demand: Reliable buying impulses come especially from China and the jewelry sector
• Weak US dollar: This favors commodity investments worldwide
• Massive ETF inflows: Institutional money is flowing into the platinum market

Anyone wondering whether buying platinum makes sense should take this upward trend seriously – especially in the context of recent years.

The Long-Term Puzzle: Why Platinum Remained Dormant for So Long

To understand why the comeback in 2025 is so significant, it’s worth looking into the past. Between 2011 and 2024, platinum consistently traded below gold – the longest negative phase in the modern price history of these two precious metals.

It wasn’t always like that: until 2014, platinum traded well above gold, at over $1,500 per ounce. In March 2008, it even reached its all-time high of $2,273, while gold only hit a new record of over $3,500 in April 2025.

The main reason for the long platinum crisis was the struggling automotive industry. Platinum is mainly used in diesel catalysts – and demand for these plummeted. In early 2020, platinum even fell below $600. The years 2020-2024 saw fluctuations around the $1,000 mark, while gold soared from record high to record high.

However, the historical price ratio shows: platinum is significantly rarer than gold, but its value was long below gold’s. This could make the 2025 comeback an opportunity.

Why Buying Platinum in 2025 Is Different from Before?

The historical significance of platinum dates back to the 19th century, but as a physical investment asset, it is young. The first state-issued platinum coin was minted in Russia – after which the metal fell into obscurity until the industrial revolution created new applications: switch contacts in telegraphs, filament wires in lamps, and with the Ostwald process (1902), a breakthrough in the automotive industry.

But here lies the special point: Platinum is not a pure investment asset like gold. It is also a consumable good. This makes it more interesting for investors who speculate on economic growth – and more dangerous, as economic downturns can reduce demand.

Unlike gold, which mainly functions as an inflation hedge, platinum has diverse industrial uses:

• Automotive industry (Catalysts, but also in new engine technologies)
• Medical (Implants)
• Chemical industry (Fertilizers, chemicals)
• Future technologies (Fuel cells, green hydrogen)

This diversity makes buying platinum sensible for investors who are not only betting on crisis scenarios but also on growth.

Demand and Supply in 2025: A Deficit with Opportunities

For 2025, the World Platinum Investment Council expects the following balance:

• Total demand: 7,863 koz (Kilounzen)
• Total supply: 7,324 koz
• Deficit: 539 koz

Demand is only down 1% – despite a 9% decline in industry. This is offset by:

• Automotive industry: +2% (3,245 koz)
• Jewelry: +2% (1,983 koz)
• Investments: +7% (420 koz)

On the supply side, total production grows only by 1%, but there is a hopeful sign: the recycling market could grow by up to 12%.

These figures indicate a fundamentally stable to slightly positive scenario. The limited production capacity in South Africa – platinum’s main mining country – cannot be quickly resolved. The structural deficit is projected until 2029. If the industry grows faster than expected (especially in China and the USA), prices could rise significantly.

Update July 2025: After massive gains since the beginning of the year, caution is advised. Part of the price increase was based on speculation. Profit-taking could weigh on prices. The further development depends on:

• The USD exchange rate
• The stability of demand (Impact of US tariffs)
• Possible supply recoveries despite structural problems

Lease rates should be closely monitored, as they indicate the market condition.

How to Buy Platinum: From Physical to Speculative

Those interested in investing in platinum have several options:

Physical platinum purchase
Coins, bars, or jewelry can be bought from precious metals dealers, banks, or online platforms. The advantage: actual ownership. The disadvantage: secure storage costs and transaction fees.

Platinum ETFs and ETCs
Invest without physical possession – the value development is tracked. Ideal for beginners, easy to integrate into existing securities portfolios.

Mining company stocks
Shares of mining companies offer leverage but come with company-specific risks.

CFD trading
Interesting for active traders: open large positions with a small capital outlay (Leverage possible). The volatility of platinum makes this attractive, but the risk is significant.

Futures and options
For experienced professionals: highly speculative instruments with enormous profit and loss potential.

Who Should Buy Platinum? A Strategy for Different Investor Types

For active traders

Platinum’s volatility is higher than gold or silver – creating opportunities. A popular strategy is trend following:

• Fast moving average (MA 10)
• Slow moving average (MA 30)
• Buy signal: Fast MA crosses above slow MA from below (e.g., enter with 5x leverage)
• Sell signal: Fast MA crosses below slow MA from above (close position)

Risk management is essential:

• Max risk per trade: 1-2% of total capital
• Use stop-loss (e.g., 2% below entry price)

Example calculation for €10,000 capital:

• Max risk per trade (1%): €100
• 2% price drop leads to 10% position loss (with 5x leverage)
• Leveraged position can be a maximum of €1,000
• Thus, the loss risk is limited to €100

For conservative investors

Platinum as a component of existing portfolios (5-15%) can be sensible:

• Its own supply/demand dynamics
• Partially countercyclical to stocks
• Long-term hedge for US equity portfolios
• Combining with other precious metals, regular rebalancing recommended

Best instruments: platinum ETCs/ETFs, physical platinum, or mining stocks.

The Conclusion: Is Buying Platinum in 2025 Worthwhile?

Yes – but with distinctions:

For traders: The volatility and structural scarcity make platinum attractive. With proper risk management, fluctuations can be exploited.

For portfolio investors: Platinum as a diversifier can make sense, especially if betting on a long-term economic revival and industrial demand. The rarity of the metal and its diverse industrial applications support this thesis.

The warning: After a 50% gain since January, a correction could be imminent. Those wanting to buy platinum now should not build all positions at once but invest gradually (Dollar-Cost Averaging). Lease rates and USD development remain key indicators.

The long period during which platinum traded below gold could be seen as an anomaly in history. 2025 might be the turning point – for investors who choose the right strategy.