2025 Platinum Investment Guide: Why Is This Precious Metal Worth Paying Attention To?

The Three Major Precious Metals Rise Together, Why Is Platinum Falling Behind?

The precious metals market has recently performed brilliantly. Gold broke through the $3,300 per ounce mark, and silver surged to $38, but platinum, also a traditional investment asset, has seen little interest. This cold reception is not without reason—over the past decade, platinum’s price trend has been like a roller coaster, far less stable than gold’s steady performance.

In 2014, platinum was priced as high as $1,500 per ounce, well above gold. But the story after that was less glamorous. Starting in 2019, gold hit new highs, recently surpassing $3,500 in April 2025, while platinum moved slowly during this period, even dropping below $600 at the beginning of 2020. It wasn’t until early 2025 that platinum saw a turnaround, with prices rebounding to around $1,450 per ounce in July, more than 50% higher than the $900 at the start of the year.

How Buying Platinum Coins Can Be a Wise Choice?

There are multiple channels to participate in platinum investment:

Physical Holding Options

Buying platinum coins, bars, or jewelry is the most direct approach. Precious metals dealers, banks, and online platforms all supply these. However, physical investment involves hidden costs—storage and insurance fees often exceed expectations, which many investors tend to overlook. For those seriously considering platinmünzen kaufen, it’s essential to calculate these costs in advance.

Financial Derivatives Route

If you prefer not to hold physical assets, platinum ETFs/ETCs are more convenient options. These products track platinum price movements and can be easily incorporated into existing portfolios. They are also friendly to stock market beginners. In contrast, platinum futures and options are more complex, carry higher risks, and are suitable for experienced investors. CFD trading, with leverage and low entry barriers, is popular among active traders—requiring only a small amount of capital to establish large positions, amplifying both potential gains and risks.

Corporate Equity Investment

Buying shares of platinum mining companies is another indirect way to participate in this market.

What Does History Tell Us: From Russian Coins to Industrial Demand

Platinum’s history as a precious metal is relatively young. Discovered in the 16th-17th centuries, its commercial applications only began in the 19th century. Russia issued the first platinum coins in 1828, which was once the only way Europeans could acquire platinum. Ironically, in 1845, Russia banned platinum exports and coinage, causing prices to plummet.

A turning point came in the early 20th century. As industrial demand grew, platinum regained attention. Royals used it for jewelry, and its technological applications expanded from telegraph contacts and filaments to automotive catalytic converters. After the invention of the Ostwald process in 1902, platinum’s role in the automotive industry was established. Prices responded accordingly, reaching up to six times the price of gold in 1924.

War and crises interrupted this momentum. It wasn’t until 2000 that platinum experienced a new strong rally—faster even than gold. In March 2008, platinum hit a record high of $2,273 per ounce. Behind this were safe-haven sentiments triggered by the financial crisis, and because platinum is not only an investment asset but also a consumable. During economic expansion, industrial demand surged, often outpacing supply, causing prices to soar. This presents a long-term investment opportunity.

The Real Reasons Behind the 2025 Platinum Market Turning Point

This year’s rapid rise in platinum prices is no coincidence. Data from the World Platinum Investment Council shows that in 2025, demand is expected to reach 7,863 thousand ounces, while supply will be only 7,324 thousand ounces, creating a shortfall of 539 thousand ounces. This supply-demand gap results from multiple factors:

• Production cuts in major sources like South Africa causing a global supply crisis
• Structural deficiencies hindering capacity expansion
• Physical scarcity reflected in extremely high financing rates
• Geopolitical uncertainties boosting safe-haven demand
• Steady demand from China and the jewelry market
• Weakening US dollar making dollar-denominated commodities more attractive
• Significant net inflows into ETFs indicating rising institutional interest

These factors form a “perfect storm,” explaining the over 50% increase from the start of the year to July.

Platinum vs. Gold: Who Is the Real Winner?

Both precious metals have their merits. Gold is favored for its inflation hedge and monetary attributes, while platinum stands out for its scarcity and industrial demand value. Platinum is indispensable in automotive exhaust catalysts, medical implants, fertilizer production, fuel cells, and green hydrogen manufacturing. In terms of rarity, platinum even surpasses gold.

Confusingly, over the past few years, platinum’s performance has lagged far behind gold. Since 2019, gold has reached record highs, while platinum has stagnated. The platinum-gold price ratio has been negative continuously since 2011, the longest in history. The main reason is the decline in diesel vehicle demand, as platinum is primarily used in diesel catalytic converters.

The good news is that 2025 has seen a change in the situation. Limited supply, steady demand, coupled with a weak US dollar and geopolitical risks, has created a rare upward opportunity for platinum.

2025 Platinum Outlook: The Gap Continues to Widen

According to market forecasts, the demand structure for platinum this year is as follows:

Total demand is expected to decrease by 1% to 7,863 thousand ounces. Although demand in automotive, jewelry, and investment sectors rises, the 9% decline in industrial demand drags overall growth down. On the supply side, growth is limited to 1% annually, but the recycling market may grow by 12%.

This dynamic suggests a neutral to slightly positive outlook. Capacity bottlenecks are difficult to resolve in the short term, and demand remains relatively stable, so platinum may maintain its value. If industrial demand exceeds expectations (which depends heavily on the industrial performance of China and the US and trade policies), prices could rise significantly. Conversely, if trade relations worsen, demand may be pressured.

Important Note (Updated July 2025): After a half-year of sharp gains, the risk of a correction has increased. While physical shortages and a weak dollar provide real support, speculative factors have also driven prices higher. Profit-taking and selling pressure may emerge. Next, close attention should be paid to the US dollar trend, demand resilience, and financing rate levels.

How Should Investors Act?

The choice depends on your trading style and risk tolerance.

Opportunities for Active Traders

The high volatility of platinum offers abundant short-term trading opportunities. CFDs and futures are primary tools. A common strategy is moving average trend following: combining the 10-day and 30-day moving averages, buy when the fast MA crosses above the slow MA (e.g., with 5x leverage), and close positions when it crosses below.

However, leveraged trading carries significant risks, requiring strict risk management:

• Single trade risk limit: 1-2% of total account balance
• Stop-loss placement: set automatically 2% below entry price

Example: with a €10,000 account, maximum risk per trade is €100 (1%), with a 2% stop-loss, the position size should not exceed €1,000. Even if the stop is triggered, the loss is limited to €100, protecting the principal.

Conservative Portfolio Approach

Platinum’s supply-demand characteristics make it less correlated with stocks and other assets, sometimes serving as an effective hedge in a portfolio. Suitable instruments include platinum ETFs/ETCs, physical platinum, or mining stocks.

The key is to determine the appropriate allocation based on individual circumstances and to consider that its volatility may increase overall portfolio risk. Regular rebalancing and combining with other precious metals can be very helpful.

Disclaimer: Precious metals prices are highly volatile, and investments may lead to losses.