Platin's Long-Term Price Development in 2025: The Underestimated Precious Metal on the Rise

The precious metals markets are currently experiencing a renaissance: gold is trading above the $3,300 mark per ounce, and silver has surpassed the $38 threshold. However, while these two classics regularly make headlines, a third player is often overlooked – yet platinum’s price development could surprise investors.

Why Platinum Has Been Underestimated for a Long Time

The history of platinum as an investment asset is remarkable: as recently as 2014, platinum prices were well above $1,500 per ounce, significantly higher than gold. But the following years brought a dramatic reversal. While gold has been reaching new records since 2019 – most recently in April 2025 with over $3,500 – platinum remained stagnant around the $1,000 mark for a long time.

One reason lies in the struggling automotive industry: platinum is primarily used in diesel catalysts, whose demand has plummeted. Additionally, unlike gold, platinum is not only viewed as a store of value but also functions as an industrial raw material. This dual role leads to greater price fluctuations.

However, 2025 could be a turning point. From January to July, platinum prices climbed from just under $900 to about $1,450 – an increase of over 50 percent.

What Drives the Current Dynamics in Platinum Price Development?

The rapid upward movement is no coincidence but the result of several converging factors:

Structural supply shortages: South Africa, the largest platinum producer, is facing significant production problems. The supply volume is growing by only about 1 percent – a historically low level that makes new capacities nearly impossible.

Demand trends: Surprisingly stable demand in China and the jewelry sector. At the same time, the investment segment is growing due to large ETF inflows and increased physical scarcity, evident in extremely high lease rates.

Geopolitics and currencies: Geopolitical tensions and a weak US dollar make commodities more attractive to international investors.

The interplay of these factors creates a “perfect storm” for platinum – with sharp price jumps since the beginning of the year.

Platinum’s Long-Term Perspective Until 2029

According to the World Platinum Investment Council, a structural deficit is expected in 2025: 7,863 koz of demand versus only 7,324 koz of supply. The resulting supply deficit of 539 koz could persist in the coming years – a bullish signal for long-term investors.

Demand is distributed as follows:

While automotive, jewelry, and investment demand are expected to grow, industrial demand is projected to decline by 9 percent. However, if Chinese and US industrial production expand more than expected, significant price gains could follow.

Another positive aspect: the recycling market could grow by up to 12 percent in 2025, partially offsetting the supply deficit – but not entirely.

Platinum vs. Gold: The Comparison

Gold convinces as a classic store of value. Platinum stands out for its dual nature: timeless elegance as jewelry and as a catalyst in e-mobility, medical technology, and green hydrogen.

Investment Opportunities: Which Instrument Fits?

Physical holdings: Coins, bars, and jewelry offer authenticity but require secure storage and incur transaction costs. Not practical for many retail investors.

ETFs and ETCs: Reflect platinum price development directly, enable easy portfolio integration, and are suitable for beginners. No physical storage costs, no holding issues.

Mining stocks: Participate in the profits of platinum producers – but with additional company risks.

CFDs (Difference Contracts): Especially attractive for active traders. Leverage allows opening large positions with little capital. A leverage of 5:1 means: a 2 percent price loss results in a 10 percent position loss. High risk but also high return potential.

Futures and options: Complex instruments for experienced speculators. High profit opportunities but also significant risk of loss.

Practical Strategies for Platinum Investors

For active traders: The trend-following strategy

A proven approach uses two moving averages (MA):

• Fast MA: 10 periods
• Slow MA: 30 periods

Trading signal: When the 10-period MA crosses above the 30-period MA, open a leveraged position. When it crosses back down, sell.

Risk management: The foundation

Those trading with leverage must follow strict rules:

Example with €10,000 capital:

• Maximum risk per trade: 1% = €100
• Stop-loss distance: 2% below entry price
• Leverage: 5x
• Result: Leveraged position max €1,000

This discipline prevents total losses and preserves trading capital for future opportunities.

For conservative investors: Portfolio diversification

Platinum, with its unique supply dynamics, can serve as a hedge. Its partially counter-cyclical development relative to stocks makes it attractive as a diversification instrument. ETFs or physical platinum within a broader precious metals context are sensible here.

The optimal allocation should be determined individually – considering the increased volatility.

Outlook: What Investors Should Watch Now

After the massive rise since the beginning of the year, there is an increased risk of consolidation until the end of 2025. Profit-taking could put downward pressure on prices. Key factors influencing platinum’s price development:

1. US dollar movements: A stronger dollar dampens the rally.
2. Lease rates: Indicate physical scarcity – an early market indicator.
3. Trade tensions: US-China trade relations directly impact industrial demand.
4. Supply dynamics: Despite the structural deficit, production increases could surprise.

Long-term platinum price development depends on how quickly new supply security is established and whether demand remains stable – or even unexpectedly increases.

Conclusion: Is Platinum Worth Buying Now?

Platinum is neither a safe haven like gold nor a speculative gamble. It is a well-considered investment for investors who:

• Can accept and utilize volatility
• Are betting on supply deficits in the long term
• Want to invest in a future-oriented industrial metal
• Seek portfolio diversification

The current market dynamics, combined with structural bottlenecks, make platinum interesting. But as with everything: invest only with money you can afford to lose – and only in strategies that match your personal risk tolerance.