Platin 2025: The underrated opportunity alongside gold and silver?

Metals Market on the Rise: While gold surpasses the $3,300 mark per ounce and silver trades above $38, Investing in Platinum also experiences a renaissance in 2025. After years of stagnation, the noble metal shows movement – but is it really worth entering compared to established alternatives?

From the Top to the Shadows: Platinum’s Up and Down

The price story of platinum is a tale full of twists. What many don’t know: platinum was once more expensive than gold. In 2014, it was still trading above $1,500 per ounce, while gold was significantly lower. Today, the opposite is true – a dramatic shift in position.

The reason isn’t solely supply and demand. While gold steadily rose and reached a new all-time high of over $3,500 in April 2025, platinum fluctuated between extreme highs and lows over a decade. In 2020, it even fell below $600, while usually staying around the $1,000 mark.

But in 2025, the picture changes: since the beginning of the year, platinum has gained over 50% – from just under $900 in January to about $1,450 in July. A jump that catches attention.

Drivers of the Current Platinum Rally

This dynamic isn’t coincidence but a combination of several factors:

• Supply crisis, especially in South Africa
• Structural deficit: supply significantly below global demand
• Physical scarcity: high lease rates signal a critical shortage
• Geopolitical tensions and their impact on commodity markets
• Stable demand – especially from China and the jewelry sector
• Weak US dollar, making commodities more attractive to international buyers
• Unprecedented ETF inflows

This interplay creates a “perfect storm” that puts platinum back in the spotlight in 2025.

Why Platinum Isn’t Just a Speculative Metal

Unlike gold, platinum isn’t just an investment. Its industrial significance is substantial:

• Automotive industry: Catalysts for diesel vehicles (41% of demand in 2025)
• Chemical industry: Production of fertilizers and special chemicals
• Medical field: Implants and medical devices
• Future technologies: Fuel cells and green hydrogen

This diversity makes platinum more susceptible to economic cycles than gold – a risk but also an opportunity for informed investors.

The Historical Perspective: A Metal with Potential

Platinum’s history as an investment is young. While gold and silver have been minted since antiquity, platinum only entered trade in the 19th century – initially only through Russian coins. An export ban followed shortly after, causing prices to collapse.

It wasn’t until the 20th century that platinum made a comeback. Monarchies worldwide collected it for jewelry because its simple elegance highlights diamonds. Industry followed: from telegraph switch contacts to lamp filament development.

The turning point came in 1902 with the Ostwald process – a large-scale method for producing nitric acid. Platinum became systemically important. Prices soared; in 1924, it was six times the gold price.

World wars slowed this momentum. Real recovery only began around 2000, leading to unprecedented price increases – in March 2008, platinum reached its then all-time high of $2,273 per ounce. The combination of financial crisis (uncertainty) and industrial demand (economic cycle) drove this.

But recent years have shown: platinum prices are more volatile and cyclical than gold prices. An important point for potential investors.

Platinum vs. Gold: The Return Puzzle

The gold-platinum ratio tells an interesting story. Since 2011 – the longest negative period in their joint history – platinum has lagged behind gold in price. Why?

The main culprit: the weakening automotive industry. With the boom of electric vehicles, demand for diesel catalysts, where platinum is concentrated, plummeted. Gold, on the other hand, benefits as a pure inflation hedge narrative and geopolitical safe haven.

However, platinum is many times rarer than gold. This discrepancy could be a historical anomaly – and some investors see the opportunity here.

In 2025, the weights seem to shift. Demand stabilizes, new industrial applications (hydrogen, fuel cells) emerge, and physical scarcity becomes acute.

How to Invest in Platinum – An Overview

Physical Acquisition

Coins, bars, or jewelry through precious metal dealers or banks. Advantage: actual ownership. Disadvantage: high storage and transaction costs.

ETFs and ETCs

These products track platinum prices and are easy to integrate into a portfolio. Ideal for beginners and long-term investors, as no physical storage is needed.

Platinum Stocks

Investments in mining companies offer leverage but require industry-specific knowledge.

CFDs and Futures

Suitable for experienced traders. CFDs allow trading with leverage from small positions (e.g., starting at 1 EUR). Futures are more complex and for very active speculators.

Contract for Difference (CFDs) as an active trading option

CFDs are a flexible alternative: you speculate on price movements without holding physical platinum. The advantage over futures is flexibility and lower capital requirements. With leverage (e.g., 5:1), small capital can control large positions – increasing return potential but also risk of loss.

Note: Trading leveraged instruments is highly risky. Commodity prices are subject to market fluctuations and can lead to significant losses.

Platinum Forecast 2025: What Do Experts Expect?

The World Platinum Investment Council forecasts for 2025:

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

This means: demand exceeds supply by about 7%. With only a 1% increase in supply, the deficit remains structural – at least until 2029.

Demand segments 2025:

Total demand decreases slightly by 1%, driven by a decline in the broad industrial sector (-9%). This is the critical point: if the industrial economy in China and the US picks up more than expected, platinum could rise significantly. Conversely, US tariffs and trade conflicts could dampen the outlook.

The Consolidation Scenario

An important update from July 2025: after massive gains since the beginning of the year, the risk of consolidation increases. While real physical scarcity and a weak US dollar pushed prices up, speculation also played a role. Widespread profit-taking could follow.

Key factors for the further course:

• Development of the US dollar exchange rate
• Demand stability despite external trade risks
• Supply development – could production unexpectedly increase?
• Lease rates as an indicator of market shortages

Trading Strategies for Different Investor Types

For active traders

The increased volatility of platinum compared to gold offers trading opportunities. A proven method is the trend-following strategy:

1. Use the fast moving average (10-period) and slow (30-period)
2. Buy signal: fast MA crosses above slow MA from below
3. Open position with leverage (e.g., 5:1)
4. Sell signal: fast MA crosses below slow MA
5. Close position

Critical: Risk management

• Risk no more than 1-2% of total capital per trade
• Set stop-loss (e.g., 2% below entry price)

Example with €10,000 capital:

• Max risk per trade: €100 (1%)
• With 2% stop-loss and 5:1 leverage: maximum position €1,000
• A 2% price drop results in a 10% position loss (2% × 5), but total loss remains €100

For conservative long-term investors

Use platinum as a portfolio diversification. Its supply-demand dynamics lead to low correlations with stocks – making it a potential hedge long-term, especially for US stock portfolios.

Suitable instruments: platinum ETCs, ETFs, physical platinum, or shares of mining companies.

The optimal quota depends on individual goals. Important: increased volatility raises portfolio risk. Combining with other precious metals and regular rebalancing makes sense.

The Conclusion: Who Should Invest in Platinum?

Platinum in 2025 is neither a speculative metal nor a safe investment – but a differentiated opportunity with clear risks.

Suitable for:

• Active traders seeking volatility
• Long-term portfolio diversifiers
• Investors betting on industrial recovery
• Hedgers against stagflation

Less suitable for:

• Ultra-conservative savers
• Beginners without market experience (except via ETFs)
• Investors unwilling to accept risk

The metal proved in 2025 that it is alive again. Whether this continues depends on global economic conditions, geopolitics, and dollar dynamics. Investors should closely monitor these factors and always limit their risk.