Platinum or Gold: Which precious metal is more interesting for investors in 2025?

The precious metals markets are showing remarkable movements in 2025. While gold has solidified the $3,300 mark per ounce and silver is trading above $38, platinum is experiencing a surprising renaissance. The platinum price has risen over 50% since January 2025 – but is this development truly beneficial for investors?

Why platinum has long been in the shadow of gold

The price history of these two precious metals tells a fascinating story. As recently as 2014, platinum, valued at over $1,500 per ounce, was significantly more valuable than gold. But while gold prices have steadily reached new highs since 2019 (in April 2025 over $3,500), platinum stagnated around the $1,000 mark for years.

Between 2020 and 2024, platinum prices fluctuated considerably, even falling below $600 at times. This divergence contradicts logic: platinum is much rarer than gold and has massive industrial demand. What’s behind this?

Main causes of underperformance included:

• Weak automotive industry: Diesel catalysts, the main consumers of platinum, lost importance
• Lack of inflation hedge narratives: Gold benefited from investor fears, platinum did not
• Negative platinum-gold ratio: The longest negative ratio in price history since 2011

The dramatic turnaround in 2025

In July 2025, platinum trades at around $1,450 per ounce – a jump of nearly $900 since January. This acceleration resulted from a perfect interplay of several factors:

Supply-side constraints:

• South African production crises restrict supply
• Structural deficit: demand far exceeds supply
• Extremely high lease rates indicate physical scarcity

Demand-side stimuli:

• Surprisingly robust demand from China and the jewelry sector
• Growth in ETF investments with large inflows
• Geopolitical tensions drive classic flight metals

Currency effects:

• Weak US dollar increases demand from non-USD regions

Platinum vs. gold: different strengths

Both metals serve different functions for investors:

Gold is the classic store of value – historically proven, psychologically ingrained, liquid worldwide. Its appreciation in 2025 is attributed to inflation hedge narratives and ongoing central bank demand.

Platinum is the cyclical precious metal. Its value development depends directly on economic activity. In the automotive industry (41% of demand), platinum is essential for catalysts. The jewelry industry (25%) uses platinum for higher-end collections. Additionally, platinum is indispensable in medicine (implants), chemical industry (fertilizer production), and future technologies (fuel cells, green hydrogen).

This diversity makes platinum an industrial raw material with speculative potential – a combination that gold does not offer.

Forecast for platinum in 2025: what can investors expect?

The World Platinum Investment Council forecasts total demand of 7,863 koz in 2025, with only 7,324 koz of supply. The resulting deficit of 539 koz will not be offset by just a 1% increase in supply.

Demand distribution 2025:

• Automotive: 3,245 koz (41%, +2% compared to 2024)
• Industry: 2,216 koz (28%, -9% compared to 2024)
• Jewelry: 1,983 koz (25%, +2% compared to 2024)
• Investments: 420 koz (6%, +7% compared to 2024)

Total demand decreases by 1%, while supply remains stagnant. The recycling segment could grow by up to 12% in 2025 – a compensating factor.

Scenario analysis: If industrial demand falls more than the projected -9%, platinum prices could stabilize. If demand surprises positively (through Chinese-American growth), significant price gains are possible. Conversely, trade tensions and US tariffs could suppress demand.

Consolidation risk: After gains of over 50% since January, there is an increased risk of profit-taking until the end of the year. Critical factors include the US dollar trend, lease rate developments, and actual supply changes.

Investment options: from classic to speculative

Investors have several ways to invest in platinum:

Physical possession (coins, bars) offers psychological security but requires safe storage with associated costs.

Platinum ETCs and ETFs mirror price development and can be easily integrated into a securities portfolio. This option is suitable for beginners in commodities trading.

Shares of platinum producers offer leverage on platinum prices with additional company risks.

Derivatives for experienced traders: CFDs (contracts for difference) enable leveraged speculation with a small capital outlay. Futures and options are more complex, highly speculative instruments with significant profit and loss potential.

CFD trading strategy example – trend following: A proven method uses moving averages (10 and 30). When the fast MA crosses above the slow MA from below, it generates a buy signal. Open a position with 5x leverage, and close on a downward cross (sell signal).

Risk management is essential:

• Risk only 1-2% of total capital per trade
• Set stop-loss about 2% below entry price
• Example: With €10,000 capital and 1% risk (€100), with 5x leverage, open a maximum position of €1,000

Strategic positioning: who should consider platinum?

For active traders: The high volatility offers interesting trading setups. The 50%+ movement in 2025 illustrates the potential – but also the risks.

For conservative long-term investors: Platinum is suitable as a portfolio addition due to its independent supply-demand dynamics. It can sometimes move counter to stocks and thus serve as a hedge for US equity portfolios. Regular rebalancing with other precious metals reduces volatility.

The key question: Is platinum better than gold? The answer depends on the time horizon. Gold remains the safe haven. Platinum is the growth play – with higher chances and risks. 2025 shows: Under the right conditions, platinum can overtake gold. But investors should assess their positions realistically and actively manage risk.