Platinum in 2025: Why Investors Are Suddenly Reconsidering This Underestimated Commodity

While Gold hits new records above 3,500 USD and Silver breaks through the $38 mark, a quiet revolution is taking place in the commodity markets. The precious metal platinum is experiencing a comeback in 2025 that surprises many investors – after years of remaining in the shadow of its shinier relatives. Is this a short-term speculation or a signal of a fundamental market turnaround?

The massive price jump: What is happening with platinum right now?

The numbers speak for themselves: In January 2025, platinum was trading just below 900 USD per ounce. Today, in July, the price has risen to around 1,450 USD – a gain of over 60% in less than half a year. This dynamic stands in stark contrast to the past seven years, during which platinum prices showed more of a sideways movement around the 1,000-dollar mark.

Behind this sudden surge is no coincidence but a chain of several factors: South Africa, the world’s largest platinum producer, is struggling with a supply shortage. At the same time, a structural deficit is evident – demand significantly exceeds available supply. Geopolitical tensions, a weak US dollar, and surprisingly stable demand mainly from China and the jewelry sector also contribute. The result: a perfect supply-demand imbalance.

Historical context: From obscurity to revaluation

To understand why platinum was neglected for so long, it’s worth looking back. While gold has served as a store of value since antiquity, platinum as an investment product only became relevant in the 19th century. Russia minted the first state platinum coins – a European sensation. But as early as 1845, an export ban caused a massive price collapse, from which the metal only recovered in the 20th century.

In the 20th century, industry discovered platinum: as a switch contact in telegraphs, as a filament in lamps, and especially after the patenting of the Ostwald process (1902) as a catalyst in the automotive industry. In 1924, platinum prices reached six times the price of gold. But after World War II, another downturn followed.

The true renaissance began around 2000. Platinum prices rose much steeper than gold – until March 2008, when platinum reached its all-time high of 2,273 USD per ounce. The financial crisis abruptly halted this development. Subsequently, platinum lost momentum continuously, while gold kept reaching new highs.

Why gold overtook platinum: The unexpected shift

The comparison between gold and platinum reveals a fundamental difference in their market dynamics. Gold primarily functions as an inflation-protected currency and pure investment asset – its value depends on macroeconomic factors and capital market dynamics. Platinum, on the other hand, is a hybrid commodity: its value is determined by both investment flows and industrial demand.

This industrial component became a problem. The automotive industry, the largest consumer of platinum, went through a difficult phase – diesel catalysts, the main application for platinum, lost relevance massively. While gold prices rose with investment volume, platinum prices remained restrained. Since 2011, the platinum-gold ratio has been negative, the longest such phase in modern price history.

But in 2025, the calculus changes. New technologies – fuel cells, green hydrogen, medical implants, chemical catalysts – are opening up new industrial growth opportunities for platinum. At the same time, extreme supply deficits have given new momentum to industrial demand.

The demand-supply gap widens

According to the World Platinum Investment Council, total demand for 2025 is estimated at 7,863 kilounzen, while total supply is only 7,324 kilounzen – a deficit of 539 kilounzen. The distribution across sectors is particularly noteworthy:

Demand shares 2025:

• Automotive industry: 41% of total demand (3,245 koz) – slight increase of 2%
• Industry: 28% (2,216 koz) – decrease of -9%
• Jewelry: 25% (1,983 koz) – increase of 2%
• Investments: 6% (420 koz) – increase of 7%

The key element is the structural supply deficit: production is expected to grow by only about 1%, while recycling could increase by up to 12%. This asymmetric development suggests that platinum prices could remain under upward pressure even with stable demand.

The coming months: opportunities and consolidation risks

After the massive price gains since the beginning of the year, the risk of profit-taking has increased. Speculative positions that pushed prices higher beyond fundamental factors could lead to declines. For investors, the development of the US dollar will be crucial, as will the impact of US tariffs on global industrial demand.

China and the USA are considered key factors. If industrial demand unexpectedly grows strongly (or consensus expects -9%), this would have a massive impact on platinum prices. Conversely, trade tensions could suppress demand. Investors should monitor lease rates in the platinum market – these are a reliable indicator of physical shortages and future price movements.

Investment options for different investor types

For active traders: Use volatility

Platinum’s higher volatility offers attractive trading opportunities. CFDs (differenzkontrakte), which operate with leverage and small capital outlays, are popular. A proven strategy is trend following with moving averages (10 and 30 MA). When the fast MA crosses above the slow MA from below, it signals an entry – with a stop-loss 2% below the entry price to limit risk.

Practical example:

• Total capital: €10,000
• Risk per trade: 1% = €100
• With leverage x5, the position can be a maximum of €1,000
• Stop-loss protects against total loss

For long-term investors: Diversification and portfolio hedging

Conservative investors use platinum as a component of existing portfolios. Thanks to its own supply-demand dynamics, it offers hedging potential against stock market declines. Suitable instruments include platinum ETFs, platinum ETCs, physical platinum, or platinum stocks from established mining companies. Regular rebalancing and combining with other precious metals reduce the increased volatility.

Additional options: Futures and stock portfolios

Experienced investors can speculate on future price movements with futures and options – but these are highly complex and risky. Platinum stocks of producing companies offer an alternative that combines leverage with company risks.

Conclusion: Act now or wait?

2025 marks a turning point for platinum. The combination of supply deficits, new industrial applications, and a weak dollar has brought the forgotten precious metal back into focus. For active traders, increased volatility offers opportunities. For portfolio investors, platinum could finally fulfill the diversification role that gold cannot.

The decision whether and how much platinum belongs in the portfolio is individual. But one thing is clear: the years of neglect may be over. The coming months will show whether this is a sustainable trend reversal or just a consolidation pause before new volatility.

Note: Commodity prices are subject to market fluctuations. Past performance is not indicative of future results. Leverage positions carry significant risks.