Platinum as an Investment 2025: Why the Precious Metal is Becoming Interesting Again

An Underestimated Investment Besides Gold and Silver

While investors are currently fascinated by record gold prices (above 3,300 USD per ounce) and silver (above 38 USD), a classic precious metal often remains overlooked: Platinum. However, this precious metal has performed remarkably well in the first half of 2025, surpassing many expectations. The platinum price has risen from nearly 900 USD in January to about 1,450 USD in July – a value increase of over 50% within a few months. But is investing in platinum truly more worthwhile than traditional gold?

Why Platinum Has Long Been in Gold’s Shadow

To answer this question, a look at recent price developments helps: In 2014, platinum was the most valuable precious metal, trading above 1,500 USD per ounce. Since then, the platinum market experienced a volatile phase. While gold showed a steady upward trend and reached an all-time high of over 3,500 USD in April 2025, platinum fluctuated for years between 600 and 1,100 USD. The price was particularly low at the beginning of 2020, falling below the 600-dollar mark.

This divergence in price development is explained by fundamental differences: gold primarily functions as an inflation hedge and pure investment asset, while platinum has a dual nature. The metal is not only sought after as a store of value but also used industrially—mainly in diesel catalysts for the automotive industry, but also in medical technology, chemical production, and future-oriented technologies like fuel cells.

The long-term supply crisis in the automotive industry (decline of diesel vehicles) suppressed platinum demand for years. At the same time, structural supply shortages and geopolitical tensions did not sufficiently support the price. The result: The platinum-to-gold ratio has been continuously negative since 2011 – the longest such phase in the price history of both precious metals.

The Turning Point 2025: What Is Changing?

The year 2025 marks a turning point. The price surge in platinum is triggered by several converging factors:

• Physical supply shortages due to South African production disruptions
• Structural deficit: demand significantly exceeds available supply
• Historically high lease rates, signaling extreme physical scarcity
• Weak US dollar, generally supporting commodities
• Surprisingly robust demand from China and the jewelry sector
• Strong ETF inflows into the investment sector

According to the World Platinum Investment Council, total demand for 2025 is expected to be 7,863 kilounzen, with only 7,324 kilounzen available – a deficit of 539 kilounzen. The automotive industry accounts for 41% of demand, followed by jewelry (25%), industry (28%), and investments (6%).

Investment Opportunities: From Physical to Speculative

Those considering platinum as an investment have several options:

Physical ownership allows direct ownership via coins, bars, or jewelry. However, storage costs and transaction fees apply.

Platinum ETCs and ETFs offer a simpler alternative for asset investors. They track the price development and can be flexibly integrated into a portfolio – ideal also for beginners.

Shares of platinum mining companies combine commodity exposure with company performance.

CFD trading with leverage is aimed at experienced traders. This financial instrument allows controlling large positions with small capital investments – for example, with a 5x leverage on a minimum deposit of 1 EUR. The advantage over futures: lower market entry barriers.

Futures and options are highly speculative and designed for seasoned market participants.

Strategies for Different Types of Investors

For active traders, platinum’s increased volatility offers attractive trading opportunities. An established method is the trend-following strategy using moving averages (10 and 30 MA). When the fast average crosses above the slow one, a long position (for example, with 5x leverage) is opened; when it crosses back, the position is closed.

Risk management is crucial:

• Risk only 1-2% of total capital per trade
• Set stop-loss (about 2% below entry price)
• Example: With 10,000 EUR capital and 1% risk tolerance, the leveraged position should not exceed 1,000 EUR (100 EUR risk x 5x leverage)

For conservative investors, platinum serves as a portfolio diversification component. Its own supply-demand dynamics and partial inverse correlation with stocks make it a long-term diversification instrument – similar to a hedge for US equity portfolios.

Outlook and Cautionary Note

The forecast for the remaining half of 2025 is shaped by two opposing forces: on one hand, a real physical deficit and supportive environment for platinum prices; on the other, speculative buying activity has driven prices higher – profit-taking could trigger a consolidation.

Key factors remain the US dollar exchange rate, demand stability (susceptible to US tariffs and China effects), and physical availability. Despite the expected structural supply deficit until 2029, lease rates and market indicators may soon send signals of relief.

Conclusion: Platinum is attractive both as a speculative short-term investment for active traders and as a long-term portfolio component. However, the right position size and strategy must be individually tailored to personal risk tolerance.