Platinum vs. Gold 2025: Which precious metals are the better investment?

The current situation in the precious metals market is sparking discussions among investors: While Gold has reached new all-time highs above $3,500 per ounce, Platinum is experiencing an unexpected renaissance. In July 2025, platinum is trading at around $1,450 per ounce — an increase of over 50% since the beginning of the year. But is this comeback sustainable, and should investors consider platinum as a serious alternative to gold?

The Turning Point in History: From the Forgotten Metal to a Comeback

The history of Platinum shows a fascinating pattern of ups and downs. For a long time, it was the most valuable precious metal — as recently as 2014, platinum prices were well above gold prices at the time. However, in the meantime, platinum has lost significant appeal. The reasons are not only supply and demand factors but also the metal’s dependence on industrial use.

While Gold has established itself as a pure investment and inflation hedge, platinum is closely linked to the real economy. The weak automotive industry — especially the declining demand for diesel catalysts — has depressed prices for years. The result: Since 2019, gold has outperformed platinum in the platinum-gold ratio. This negative ratio has lasted longer than ever before in the price history of both metals.

Understanding the Current Price Surge: A Perfect Storm

The rapid price increase of platinum since 2025 is no coincidence but the result of several converging factors:

• Physical scarcity due to supply disruptions (especially in South Africa)
• Structural deficit: demand exceeds available supply
• Weak US dollar increases attractiveness for international buyers
• Massive ETF inflows into the investment segment
• Surprisingly stable demand in China and the jewelry sector
• Geopolitical tensions exacerbate supply chain issues

This constellation leads to significant price jumps — from January’s level of just under $900 to over $1,450 within a few months.

Platinum and Gold — Two Different Investment Characters

The fundamental difference between the two precious metals lies in their economic role:

Gold functions as a pure investment vehicle and inflation hedge. Its value development is primarily influenced by capital market dynamics, interest rate expectations, and geopolitical uncertainties. An economic upswing does not automatically lead to gold scarcity.

Platinum, on the other hand, is both — a jewelry metal and an indispensable raw material. Industry uses it in catalysts, medical implants, the chemical sector, and future-oriented technologies like fuel cells. An economic upswing automatically generates higher demand here and can lead to supply shortages.

Paradoxically, platinum is much rarer than gold — yet its price has been significantly lower in recent years. This makes the current rally interesting for speculative investors.

Market Outlook for 2025: Opportunities and Risks

According to the World Platinum Investment Council, 2025 is expected to see total demand of 7,863 koz and supply of only 7,324 koz. This results in a structural deficit of 539 koz. Overall demand is projected to decline by 1%, while supply grows by only 1%.

Particularly interesting: the recycling segment could grow by up to 12% in 2025. Demand segments are developing differently:

• Automotive industry (41% of demand): +2% growth
• Industry (28%): -9% growth (main limiting factor)
• Jewelry (25%): +2% growth
• Investments (6%): +7% growth (especially dynamic)

The investment segment is growing especially fast — a sign that investors have understood the scarcity scenario.

The overall outlook remains neutral to slightly positive. The key will be industrial developments in China and the USA. If bilateral trade tensions escalate, industrial demand could be dampened. Conversely, a stable or growing industrial sector could enable significant price increases.

A crucial warning from July 2025: after the massive price gains, the risk of consolidation increases. Profit-taking could lead to setbacks. Investors should monitor lease rates — they are a reliable indicator of market pressure.

Investment Opportunities in Platinum: From Conservative to Speculative

For Conservative Investors

Physical platinum in the form of coins or bars offers ownership and security but involves high storage and transaction costs. More practical are platinum ETCs and ETFs, which can be easily integrated into a securities portfolio and mirror the price development one-to-one. They are also suitable for beginners in the capital market. A small allocation to existing portfolios can be sensible, as platinum sometimes reacts inversely to stocks and thus acts as a diversifier.

Platinum stocks of mining companies are another option for long-term oriented investors.

For Active Traders

The high volatility of platinum offers interesting opportunities. CFDs allow trading large positions with a small capital outlay — ideal for trend-following strategies. A proven setup involves two moving averages: When the fast (10-day) crosses above the slow (30-day), it signals a buy. The position is closed when the fast MA crosses below the slow one.

Critical with leveraged products: Strict risk management is essential.

• Risk only 1-2% of total capital per trade
• Set stop-loss (e.g., 2% below entry price)
• Example: With €10,000 capital and a 1% risk budget (€100), only invest a maximum of €1,000 with leverage x5

Futures and options are suitable for experienced speculators with high risk appetite — intensive professional training is recommended beforehand.

The Conclusion: When Does Platinum Investment Make Sense?

The answer depends on the investor type:

Long-term investors use platinum for portfolio diversification, benefiting from industrial demand and the structural deficit. The allocation should be small and regularly rebalanced, as higher volatility increases overall risk.

Active traders find more attractive setups in the current market phase than with gold. The stronger price fluctuations enable better entry and exit points. However, this requires discipline and risk management.

Fundamental factors favor a healthy platinum market: real physical scarcity, a structural deficit until 2029, and rising demand in the investment segment. However, the July balance sheet warns of consolidations. Those investing now should closely monitor the coming weeks — especially the US dollar development and lease rates. Platinum remains an exciting alternative in a precious metals portfolio but does not deserve the status of a gold substitute. More like: an additional position with a different risk-return profile.