Platinum Price 2025: Why Are Precious Metal Investors Reconsidering This Forgotten Commodity?

Precious metals have remained popular in recent years, but the focus seems to always be on gold and silver. As a classic investment asset, why is platinum often overlooked? This question warrants in-depth exploration.

From Obscurity to Revival: Changes in Platinum’s Market Position

In investment history, platinum once symbolized status. In 2014, platinum prices were still above $1,500 per troy ounce, far exceeding gold prices at the time. However, over the following decade, the fates of these two precious metals dramatically reversed.

Gold surged steadily, reaching a new high of over $3,500 per troy ounce in April 2025. In contrast, platinum’s performance appeared dull—at the beginning of 2020, it even fell below $600, and then hovered around $1,000 for a long period. It wasn’t until the start of 2025 that a turnaround occurred. From around $900 at the beginning of the year, platinum rose to approximately $1,450 in July, an increase of over 50%.

This price rebound was not accidental. Multiple factors are driving platinum prices upward: supply crises in major producing regions like South Africa, structural shortages worldwide, extremely tight spot markets, geopolitical uncertainties, and stable demand expectations from China’s jewelry market, coupled with a weakening US dollar—these conditions together created a “perfect storm” environment for platinum.

Investing in Platinum: Comparing Multiple Approaches

For investors interested in participating in the platinum market, there are various options, each with its own characteristics.

Physical Ownership—While straightforward, it involves storage costs and security risks. Investors can buy physical bars or coins, but this requires finding a secure storage location, often incurring significant expenses.

Exchange-Traded Funds (ETFs/ETCs)—Offer more flexible options. These products track platinum price movements and can be easily integrated into existing stock portfolios, making them especially suitable for newcomers.

Mining Company Stocks—An indirect participation method. Investors can gain exposure by holding shares of platinum mining companies.

Derivatives Trading—Includes futures, options, and Contracts for Difference (CFDs). These are more complex tools aimed at experienced traders. CFDs are particularly popular due to their low entry threshold (starting from €1) and leverage features—allowing traders with limited capital to control larger positions. Of course, this convenience also entails higher risks.

Historical Perspective: Understanding the True Value of Platinum

Platinum’s investment potential is closely linked to its industrial uses, which differ significantly from gold’s attributes. Gold is primarily a financial asset, whereas platinum is both an investment asset and a vital industrial commodity.

This distinction has been validated multiple times in history. From its first appearance as an investment asset in the 19th century, to its applications in telegraphy and light bulbs in the early 20th century, and to the patenting of Ostwald process (large-scale nitric acid production) in 1902 enabling widespread use in automotive catalytic converters—each stage has driven a reassessment of this precious metal’s value.

In 1924, platinum prices reached six times that of gold; in March 2008, platinum hit a record high of $2,273 per troy ounce. These extreme fluctuations often stem from sudden changes in industrial demand—booms in economic prosperity lead to surges in platinum demand, tightening supply and pushing prices higher.

Market Trends in 2025: Analyzing the Outlook

The current key feature of the platinum market is supply-demand imbalance. According to the World Platinum Investment Council, global demand in 2025 is projected at 78.63 million ounces, while total supply is only 73.24 million ounces, resulting in a deficit of 5.39 million ounces.

On the demand side, the automotive industry accounts for 41% (expected to grow slightly by 2%), industrial applications 28% (down 9% year-over-year), jewelry 25% (up 2%), and investment demand 6% (up 7%). Supply growth is extremely limited at just 1%, but the recycling market may grow by 12%, reflecting increased reuse of existing platinum inventories.

This structural deficit is expected to persist until 2029. If industrial demand in the US and China exceeds expectations or if the US dollar continues to weaken, platinum prices could rise further; conversely, trade tensions or industrial recession could exert downward pressure on prices.

Strategy Recommendations for Different Investors

Short-term traders can leverage platinum’s high volatility relative to other precious metals. A classic approach is momentum trading: using a fast moving average (10-day) and a slow moving average (30-day). When the fast crosses above the slow, go long; when it crosses below, close the position. Due to leverage amplifying gains (and losses), strict risk management is essential—limit risk per trade to 1-2% of the account balance and always set stop-loss orders.

For example, if the account balance is €10,000, the maximum risk per trade is €100. Setting a stop-loss 2% below entry price and using 5x leverage, the position size should be limited to €1,000.

Long-term investors can view platinum as a diversification tool within their portfolios. Since platinum sometimes exhibits inverse correlation with stocks, moderate allocation can serve as a hedge in certain market conditions. Holding platinum via ETFs, physical assets, or mining stocks, combined with periodic rebalancing, can effectively manage portfolio risk. The specific allocation ratio should be adjusted flexibly based on individual risk tolerance.

Regardless of the chosen approach, investors should closely monitor the lease rate—a market indicator reflecting the tightness of the spot market, which influences future price movements. Additionally, factors such as the US dollar exchange rate, US tariffs affecting China, and supply dynamics from major producers like South Africa are key variables impacting platinum trends in the second half of 2025.