When is platinum really worth it? The precious metal comparison 2025

The world of precious metals is currently experiencing a renaissance: Gold stabilizes above the $3,300 mark per ounce, while Silver has broken through the $38 threshold. But while these two classics dominate the headlines, a quiet revolution is taking place in the Platinum price—one that many investors have so far overlooked.

The Paradoxical Position of Platinum Compared to Gold

Who would have thought: The metal that was once more valuable than all other precious metals is now struggling to regain market attention. In 2014, Platinum was valued higher than gold, with quotes over $1,500 per ounce. A dramatic change followed.

The price development over the last ten years tells a story full of ruptures and hopes. While Gold experienced an unprecedented rise and reached its all-time high of over $3,500 in April 2025, the Platinum price moved within a much narrower range. The low point came in 2020, when platinum temporarily traded below $600. But since January 2025, a completely different picture has emerged: the Platinum price has exploded and stood at about $1,450 in July 2025—a remarkable increase of over 50% within a few months.

This divergence raises a fundamental question: Is platinum or gold the better store of value today?

Why the Platinum-Gold Ratio Has Been Negative for Years

To answer this question, it’s worth looking at historical patterns. Gold primarily functions as an inflation-protected means of payment and a safe haven for economies. Platinum, on the other hand, has a dual nature: it is both a precious metal and an industrial raw material.

This dual nature explains the underperformance of recent years. The automotive industry—long the main buyer of platinum catalysts—has been going through tough times. The trend toward electric vehicles and weak diesel sales have drained demand. At the same time, demand for Gold in the credit markets remained consistently high, leading to an increasingly negative platinum-gold ratio since 2011—the longest negative phase in the price history of both metals.

But the situation is changing rapidly. Platinum is increasingly used in fuel cell technology and green hydrogen, in medicine as an implant material, and in the chemical industry for fertilizer production. At the same time, Platinum is many times rarer than Gold.

The Perfect Storm: What Explains the Platinum Rally Since 2025

The sharp price increase from about $900 in January to $1,450 in July 2025 is based on a confluence of several factors:

A supply crisis—especially in South Africa, the world’s largest producer—meets a structural deficit. The market currently demands more than is produced. The lease rates (an indicator of physical scarcity) have risen to extreme heights. Geopolitical uncertainties, which make safe havens like precious metals attractive, as well as a weak US dollar supporting commodity prices in general, also play a role. Surprisingly, demand—particularly from China and in the jewelry sector—remains robust.

Together, these factors have propelled the Platinum price into a new dynamic that has little in common with previous phases.

Platinum or Gold – Where Lies the True Potential?

There is no simple answer. Gold convinces with stability and millennia-long proof as a store of value. Platinum offers volatility and speculative potential.

For 2025, the World Platinum Investment Council expects total demand of 7,863 koz against an offer of only 7,324 koz. This results in a deficit of 539 koz. The automotive industry will account for 41% of demand (3,245 koz with 2% growth), industry 28% (2,216 koz with -9% decline), jewelry 25% (1,983 koz with 2% increase), and investments 6% (420 koz with 7% increase).

Total demand is expected to decrease by 1%—but this forecast is based on the assumption of stable industrial development. If China and the USA boost their industry more than expected, platinum prices could rise significantly.

Investment Options: From Physical to Speculation

Physical ownership offers immediate ownership but involves significant storage and transaction costs.

Platinum ETFs and ETCs provide simplicity and integration into existing portfolios—ideal for beginners.

Shares of platinum producers link performance to the business development of individual companies.

Futures and options are complex, highly speculative instruments for experienced traders with great profit and risk potential.

CFDs (Contracts for Difference) allow active traders to speculate on price movements with less capital via leverage. Leverage multiplies both gains and losses—a double-edged sword.

Strategies for Different Investor Types

For active traders: Platinum’s volatility is an advantage. A proven trend-following strategy uses moving averages (10 and 30). When the fast MA crosses above the slow MA, follow with leverage; when it crosses below, exit. Risk management is essential—risk only 1-2% of capital per trade, combined with stop-loss orders at 2% below entry price.

For conservative investors: Adding platinum to a portfolio (about 5-10% of a precious metals allocation) offers diversification, as price dynamics sometimes move inversely to stocks. This can stabilize a portfolio over the long term, especially since increased volatility can be tamed through regular rebalancing.

The Outlook for the Rest of 2025

After the price rallies, a consolidation phase is likely. Profit-taking could set in. Key questions will be:

• How will the US dollar develop?
• Will demand remain stable despite possible US tariffs?
• Can producers reduce the structural deficit?
• What will happen to lease rates as a market sentiment indicator?

The outlook for platinum remains mixed to positive—a classic scenario for speculators and portfolio diversifiers, but less so for those seeking the safety of Gold.