Platin 2025: Is now the right time to invest?

The precious metals markets are showing impressive dynamics in 2025. Gold breaks through the $3,300 mark, silver climbs above $38 – but while these classics are in the spotlight, platinum is experiencing a remarkable renaissance. From just under $900 in January to $1,450 in July 2025: an increase of over 50% in just six months. But is investing in platinum really more worthwhile than in proven alternatives?

Why platinum is becoming interesting again now

For years, platinum was the loser among precious metals. While gold steadily reached new all-time highs since 2019 – recently over $3,500 in April 2025 – platinum languished around $1,000. The reasons were well known: weakness in the automotive industry, declining demand for diesel catalysts, lack of attention from institutional investors.

But 2025 marks a turning point. The current price increase did not arise from speculative bubbles alone, but from a combination of tangible factors: structural supply shortages in South Africa, extreme physical scarcity (evident in record lease rates), geopolitical tensions, stable demand growth in China and the jewelry segment, as well as a weaker US dollar. A perfect storm for platinum prices.

The long-overlooked history

To evaluate investing in platinum, a look into the past helps. Unlike gold, platinum is not only an investment asset – it is also a consumable good. It has been in circulation since the 19th century (the first government coin came from Russia), and experienced its peak during the industrialization of the 20th century. In 1924, platinum was worth six times gold. The patenting of the Ostwald process in 1902 laid the foundation for automotive use – a application that still dominates today.

In March 2008, platinum reached its all-time high of $2,273, driven by supply deficits during the financial crisis and strong industrial demand. Afterwards, a long dry spell followed: crises pushed prices down, electromobility weakened diesel demand, and the shine of gold overshadowed the less well-known platinum.

Since the beginning of 2025, however, the price development signals a paradigm shift.

Platinum vs. gold: what’s the difference?

Gold protects against inflation and serves as a monetary investment asset – a proven strategy for millennia. Platinum, on the other hand, combines two qualities: precious metal shine with industrial added value. It is found in diesel catalysts, medical implants, fertilizers, and future-oriented technologies like fuel cells and green hydrogen.

Platinum is also significantly rarer than gold. Yet, the platinum-gold ratio has been negative since 2011 – the longest negative phase in the price history of both metals. This discrepancy indicates a massive undervaluation, which begins to correct in 2025.

How to invest in platinum now

Physical possession

Coins, bars, or jewelry offer direct value but require secure storage and entail high transaction costs. Classic, but less flexible.

ETFs and ETCs

These instruments mirror price developments and are easy to integrate into a portfolio – ideal for beginners and conservative investors.

Shares of platinum mining companies

If you bet on the industry, you can invest in production companies and benefit from operational profit increases.

CFD trading with leverage

For active traders, CFD trading is an option. With a small capital outlay, large positions can be opened – but with correspondingly higher risk. Leverages of 1:5 are common, but can also lead to significant losses if the market moves unfavorably.

Futures and options

Complex instruments for experienced speculators who want to bet on future price developments.

Forecast 2025: opportunities and scenarios

The World Platinum Investment Council expects a demand of 7,863 koz in 2025 against an supply of only 7,324 koz – a deficit of 539 koz. Supply growth is minimal (only about 1%), while the recycling segment could increase by up to 12%.

Demand shows a nuanced picture:

• Automotive industry (41%): +2% growth
• Industry (28%): -9% decline
• Jewelry (25%): +2% growth
• Investments (6%): +7% growth

The outlook is neutral to slightly positive. As long as production capacities remain limited and demand stays stable, platinum could hold its value or continue to rise. A surprisingly strong industrial growth in China and the US would trigger significant price gains.

But caution: After the rapid increases since January, the risk of consolidation until the end of the year has increased. Profit-taking could put downward pressure on prices. Key factors will be the US dollar, US tariffs, and lease rates.

Trading strategy: trend-following for active traders

Those trading CFDs or leveraged products can use a classic trend-following strategy:

Basic setup:

• Fast moving average (10-day MA)
• Slow moving average (30-day MA)
• Buy signal: Fast MA crosses above slow MA from below
• Sell signal: Fast MA crosses below slow MA from above

Risk management is essential:

• Risk only 1-2% of total capital per trade
• Set stop-loss about 2% below entry price

Practical example:

• Total capital: €10,000
• Max risk per trade (1%): €100
• With a 2% stop-loss and 5x leverage: position size max €1,000
• If the price drops, the position automatically stops

Long-term portfolio: platinum as a diversifier

For more conservative investors, platinum offers another advantage: diversifying properties. While platinum follows its own supply and demand dynamics, it can sometimes move counter to stocks and thus serve as a hedge – especially for US stock portfolios.

The optimal platinum allocation cannot be determined universally and must be individually set. Important: The increased volatility also raises portfolio risk. Combining with other precious metals and regular rebalancing makes sense.

The conclusion: a time for new considerations?

Investing in platinum today means betting on a structural change. The years-long undervaluation is approaching its end – whether through fundamental supply shortages or increased industrial demand. At the same time, risks remain: profit-taking, economic downturns, or a stronger US dollar could trigger price declines.

For active traders: volatility offers trading opportunities but requires disciplined risk management.

For investors: platinum can add diversification to a portfolio but should not become an overweighted position.

The chances of a successful platinum investment are better in 2025 than in the past ten years – but as with all commodities, thorough analysis and personal risk appetite ultimately determine success.