Gold Price 2025: Opportunities and Risks Compared to Traditional Precious Metals

Precious metals markets show remarkable dynamics in 2025. The gold price moves above the $3,300 mark per ounce, silver trades over $38. However, while gold and silver continuously attract attention, platinum remains often underestimated – despite showing impressive price movements in 2025.

The current situation: platinum price with a 50% rally since the beginning of the year

In 2025, platinum prices reacted surprisingly dynamically. In January, the quote was just under $900 per ounce, and by July 2025, platinum was already around $1,450 – an increase of over 50%. This pace is significantly different from the stagnating years prior.

Gold, on the other hand, experienced a steady upward trend: the new all-time high of over $3,500 was only reached in April 2025. The contrast is evident – while platinum long lagged behind expectations, 2025 appears to be a turning point.

Why platinum has been underestimated for a long time

The price history explains much. Platinum was not always an underperformer – in 1924, it was worth six times the gold price. In March 2008, platinum reached its previous all-time high of $2,273 per ounce. But then followed a longer consolidation phase.

Since 2019, a clear pattern emerged: gold reached new record highs, while platinum prices stagnated or declined. The longest period with a negative platinum-to-gold ratio since 2011 highlights this weakness. A key reason was weak demand for diesel catalysts – a main application for platinum in the automotive industry. In early 2020, platinum even traded below $600.

What is currently driving platinum prices higher?

The price jump in 2025 results from multiple overlapping factors:

Supply side: Structural problems in platinum mining, especially in South Africa, lead to a significant supply crisis. Physical availability is extremely tight – evident from high lease rates in the market.

Demand side: Surprisingly stable demand from China and the jewelry sector. Additionally, investment demand is growing through large ETF inflows.

Macro environment: The weak US dollar makes platinum more attractive to international buyers. Geopolitical tensions boost demand for safe-haven assets.

This constellation created a kind of perfect storm – the ideal environment for a price rally.

Forecast for platinum in 2025: structural deficit remains

According to the World Platinum Investment Council, total demand in 2025 is expected to be 7,863 koz, with supply only at 7,324 koz. The resulting deficit of 539 koz underscores the fundamental supply shortage.

Demand is distributed as follows:

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

Supply grows by only 1%, while the recycling market could increase by up to 12%. However, structural restrictions make large increases in primary production unrealistic.

Conclusion on the forecast: Neutral to slightly positive. With stable supply and quasi-stable demand, platinum could remain price-stable. If industrial demand falls more than the currently expected -9%, there are opportunities for significant price increases.

Warning signal since July 2025: After substantial price gains, the risk of consolidation has increased. Speculation has driven the price – if profit-taking begins, this could cloud the outlook. Investors should monitor lease rates and the dollar trend.

Platinum price in context: gold and silver as comparison

Gold primarily benefits from its function as inflation hedge and means of payment. The gold price has shown continuous records since 2019. Platinum, on the other hand, has a dual nature: it is both an investment asset and a consumable. Its industrial use in catalysts, medical technology, chemical industry, and future technologies like fuel cells makes it dependent on the economic cycle.

Silver moves between gold and platinum – with industrial demand but also strong speculative components.

A key difference: platinum is significantly rarer than gold. Yet, the price development has lagged behind gold. This discrepancy could be a sign that platinum was undervalued for a long time.

Investment opportunities: from physical to speculative

Physical purchase: Coins, bars, or jewelry from dealers. Disadvantages: high storage and transaction costs, secure storage required.

ETCs and ETFs: Easily integrated into existing portfolios. Ideal for beginners, as no physical storage is necessary.

Shares of platinum mining companies: Indirect exposure with leverage effect on price increases.

CFD trading with leverage: Interesting for active traders. With CFDs (Difference Contracts), one can speculate on price movements without owning the metal. Leverage allows large positions with small capital outlay – but also increased risk. Regulated platforms often offer conditions starting from a 1 EUR minimum deposit.

Futures and options: Highly speculative instruments for experienced investors. They allow targeted price speculation but carry significant risks.

Trading strategies for active traders

Due to the high volatility of platinum prices, CFD trading is suitable for traders. A proven method is the trend-following strategy with moving averages:

• Fast MA (10 days) crosses slow MA (30 days) from below: buy signal
• Fast MA crosses slow MA from above: sell signal
• Use leverage, for example, 5:1

Risk management is essential: Max 1-2% of total capital should be risked per trade. A stop-loss 2% below entry price protects against extreme losses.

Example with €10,000 capital:

• Max risk per trade (1%): €100
• Stop-loss at 2% price loss
• With 5x leverage, a 2% price loss equals a 10% position loss
• Leveraged position should not exceed €1,000

Long-term positioning: portfolio diversification

For more conservative investors, platinum is suitable as an addition. The metal sometimes moves inversely to stocks – it can serve as a hedge, especially for US stock portfolios. Its own supply and demand dynamics offer diversification benefits.

Suitable instruments: platinum ETCs/ETFs, physical platinum, or platinum stocks.

Important: Increased volatility also raises portfolio risk. A diversification with other precious metals and regular rebalancing makes sense. The optimal allocation must be determined individually.

Conclusion: platinum price 2025 offers opportunities – with caution

The platinum price in 2025 marks a turning point. After years of stagnation, active traders and investors are taking advantage of volatility. The structural deficit in the market indicates medium-term price stability and potential.

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

For long-term investors: platinum can be a valuable portfolio component – not as a replacement for gold, but as a supplement with its own dynamics.

Key factors for further development: How will the US dollar behave? Will physical demand remain stable? Can supply recover? These factors will determine the further course of prices.

Note: Commodity prices are subject to market fluctuations and can lead to losses. Trading with leverage involves high risk. Regulated according to CySEC standards.