Platin 2025: Why the forgotten precious metal gold is now competing

The precious metals markets are experiencing an exciting scenario in 2025: While gold hits new records with prices over $3,500 per ounce, platinum is also undergoing a remarkable renaissance. In July 2025, the white metal trades at around $1,450 – an increase of over 50% since the beginning of the year. But why does platinum traditionally lag behind in the gold price comparison, and is an investment still worthwhile?

The surprising market dynamics: Gold vs. Platinum price

The gold vs platinum price comparison reveals a fascinating reversal: While gold has been reaching new highs since 2019, platinum remained in a sideways trend for years. The reasons are diverse – weak automotive industry, declining demand for diesel catalysts, geopolitical uncertainties. But 2025 marks a turning point.

The price ratio between the two metals tells a story: In earlier times, platinum was the more valuable metal. In 2014, platinum prices were still significantly above gold. Today, the picture has changed – but the recent rally suggests investors are recognizing platinum’s long-term undervaluation.

What drives platinum higher in 2025?

The current price dynamics are fueled by several factors:

Supply-side constraints dominate the scene. South Africa, the largest producer, is struggling with structural issues. The market deficit – demand exceeds supply by 539 kilounces – creates real scarcity. The high leasing rates emphasize this physical shortage.

Currency dynamics also play a role: The weak US dollar makes precious metals more attractive to international buyers. At the same time, platinum benefits from geopolitical tensions, which drive flight capital into safe havens.

Investment flows reinforce the trend. ETF inflows into platinum products indicate that professional investors recognize the opportunities.

Investment options: Different strategies for different investor types

For active traders: Platinum CFDs offer an efficient way to profit from price movements. With moderate leverage – for example 5:1 – exposure can be built with smaller capital. The trend-following strategy using moving averages (10 and 30 MA) works particularly well given platinum’s high volatility. Strict risk management is essential: risk no more than 1-2% of total capital per position, set stop-loss (about 2% below entry price).

Practical example: With €10,000 capital, the maximum risk per trade would be €100. With 5:1 leverage, this corresponds to a position of up to €1,000.

For long-term oriented investors: Platinum ETFs and ETCs offer straightforward participation without storage costs. Physical bars and coins are also an option, though with higher transaction fees. Platinum mining company stocks are another alternative.

For conservative portfolios: A 5-10% allocation to platinum can serve as a diversifier. The metal often moves inversely to stock portfolios and offers hedging potential – especially with US equity positions.

Outlook for the platinum market in 2025

The World Platinum Investment Council expects total demand of 7,863 kilounces in 2025, against an supply of 7,324 kilounces. The structural deficit of 539 kilounces remains.

Demand is distributed as follows:

• Automotive industry: 41% (3,245 koz) – slightly growing
• Industry: 28% (2,216 koz) – declining by 9%
• Jewelry: 25% (1,983 koz) – moderately increasing
• Investments: 6% (420 koz) – growing

Surprising developments could move the market: If industrial demand in China and the USA grows more strongly than expected, platinum could rally significantly further. Conversely, profit-taking and a dollar recovery could exert short-term pressure.

Gold vs platinum: Different investment logics

Gold primarily functions as an inflation hedge and a trust anchor. Its price is driven by macro factors, interest rates, and consumer prices.

Platinum is a dual-purpose metal: partly an investment asset, partly an industrial metal. Its price development is thus more dependent on economic cycles. During economic upswings, supply shortages can quickly develop – enabling outperformance. Long-term investors leverage these cycles.

Historically, it has been shown: In March 2008, platinum reached an all-time high of $2,273 – benefiting at that time from financial crisis uncertainty and concurrent cyclical buying pressure. Similar scenarios could repeat in 2025-2026.

Recommendations for investors

The choice between gold and platinum – or a combination – depends on the investor profile:

Active traders find attractive opportunities in platinum CFDs with moderate leverage. The increased volatility risk is compensated by higher return potential. Clear entry and exit criteria and strict risk management are crucial.

Passive investors benefit from platinum ETCs as a diversification component – around 5-10% of a diversified portfolio. This reduces dependence on pure stock market movements and exploits the relative undervaluation against gold.

Small-budget savers can start trading CFDs from just €1 and gain practical experience. Euro deposits and regulated platforms lower entry barriers.

For 2025: platinum has overcome its niche shadow existence. The combination of genuine physical deficit, weak dollar, and rising investment flows could bring this white metal closer to its value ratio with gold in the long term.