Platin wins again: Is this precious metal worth it in 2025 compared to gold?

The year 2025 brings a surprising turn in the precious metals market: While gold has been hitting new records for years, platinum is currently experiencing a spectacular comeback. In January, it was priced at just under $900 USD, but by July, the platinum price climbed to approximately $1,450 USD per ounce — an increase of over 50 percent. This dynamic raises the question: Can platinum catch up to traditional investment gold as an investment again?

The Historical Price Anomaly: Why Platinum Struggled for a Long Time

The statistics are astonishing: platinum is rarer than gold, yet its price is significantly lower. To understand why, we need to look into history.

Until 2011, platinum was regularly more expensive than gold — sometimes surprisingly so. In 1924, the metal even experienced a boom: platinum prices soared to six times the gold price at that time. The peak came in 2008: with $2,273 USD per ounce, platinum reached its all-time high — driven by financial crisis uncertainty and massive industrial demand.

After that, a long period of suffering followed. While gold prices steadily increased and even surpassed $3,500 USD in 2025, platinum remained in a sideways trend around the $1,000 mark. The reason: weak demand from the automotive industry, where platinum is mainly used in diesel catalysts. The rise of electric mobility and diesel bans drained demand.

But now, the tide is turning again.

The Comeback in 2025: Four Reasons for the Platinum Price Surge

The current rise is no coincidence. A perfect storm of several factors is driving platinum upward:

1. Supply shortages: South Africa, the main producer of platinum, is struggling with production problems. Mining capacities are structurally strained and cannot be quickly expanded. For 2025, only a supply increase of about 1 percent is expected — a magnitude that hardly offsets the structural deficit.

2. Stable to growing demand: Contrary to expectations, demand remains surprisingly robust. China shows buying interest, the jewelry sector remains stable, and investors are rediscovering platinum through ETF inflows. The World Platinum Investment Council expects total demand of 7,863 ounces in 2025, while total supply is only 7,324 ounces — a deficit of 539 ounces.

3. Weak US dollar: The weak dollar makes platinum more attractive and price-wise more appealing to international buyers.

4. Extremely high lease rates: These indicate physical scarcity — signals that market participants are expecting shortages and are willing to pay high fees for physical holdings.

Platinum vs. Gold – The Direct Comparison

The differences are more fundamental than just the current price:

Gold is primarily a financial asset. Its value is driven by inflation, interest rate expectations, and capital market uncertainty. Little industrial demand, little consumption. This makes gold very stable and ideal for conservative investors.

Platinum is a hybrid asset. It is both jewelry metal and raw material. Demand depends heavily on industrial activity — auto catalysts, medical implants, chemical production, hydrogen fuel cells. This makes platinum more volatile but also potentially higher-yielding during upswings.

A fascinating fact: platinum is about 30 times rarer than gold. Yet, its current price is roughly 50 percent lower. This valuation gap could be corrected in the long term — bringing platinum closer to gold in value.

The Demand Components in 2025 in Detail

The World Platinum Investment Council has broken down the segments:

• Automotive industry: 3,245 ounces (41 percent) – with 2% growth
• General industry: 2,216 ounces (28 percent) – with -9 percent decline
• Jewelry: 1,983 ounces (25 percent) – with 2% growth
• Investments: 420 ounces (6 percent) – with 7% growth

The industrial sector is likely to suffer this year. But here lies a hidden opportunity: if China or the USA grow faster than expected, platinum could benefit massively. The trade relations between the two countries are the wildcard.

Investment Options: From Conservative to Speculative

For safety-oriented investors:

Physical platinum via coins or bars offers security but requires safe storage and incurs transaction costs. Alternatively, platinum-ETCs or platinum-ETFs — which mirror the price, are flexible, and cost less.

For active traders:

This is where it gets interesting. Platinum CFDs allow speculation on price changes with leverage. With a leverage of x5, a €1,000 position can be controlled with only €200 capital — an option for traders with smaller budgets. The high volatility of platinum makes it a popular trading instrument.

A proven strategy: trend following with moving averages. Use the fast (10) and slow (30) averages. When the fast crosses above the slow, buy with moderate leverage. The sell signal occurs on the reverse crossover.

Important risk management:

• Risk only 1-2% of total capital per trade
• Set stop-loss (e.g., 2% below entry price)
• Keep leverage in check

Example: With €10,000 total capital → maximum €100 risk per trade → with x5 leverage → position size should not exceed €1,000.

For long-term investors:

Platinum as a portfolio component works because it has its own supply and demand dynamics. It often moves inversely to stocks — making it a potential hedging instrument. The proportion of allocation should be decided individually but should not overly increase portfolio volatility.

The Platinum Forecast for the Second Half of 2025

After a rapid first half-year, the risk of consolidation increases. Many gains could be given back in the short term — simply because the rally was too steep and profit-taking looks tempting.

Three factors will be decisive:

1. Dollar exchange rate: If the USD remains weak, it supports platinum prices.
2. Demand reality: Will demand from China and industry hold up, or will it collapse?
3. Supply reactions: Could production unexpectedly increase faster?

Keeping an eye on lease rates remains essential — they signal how tight physical scarcity really is.

Conclusion: When Does Platinum Make Sense?

For traders: The volatility makes platinum an interesting speculation. With CFDs and proper risk management, good returns can be achieved in the trend.

For portfolio investors: Platinum adds diversification to the portfolio, not completely but as part of a precious metals mix. Its rarity and industrial demand provide long-term momentum.

Will platinum be worth more than gold? Long-term, this seems possible — not because of gold prices, but because platinum is undervalued. If industry and demand pick up again, prices could reach $2,000 USD or higher. This would correct the valuation ratio to gold.

The key: The coming quarters will show whether the platinum momentum has substance or was just a speculative bubble.