Just read something interesting about platinum and had to look twice: Although platinum reached a new all-time high of nearly $2,925 USD in January 2026, is platinum more expensive than gold? No, quite the opposite – gold trades with a premium of over $2,700 USD. Despite platinum’s extreme rally since mid-2025, the question remains: Is platinum truly more expensive than gold, or is there something else at play?

The crazy part: platinum gained over 100% in 2025, jumping from below $1,000 to nearly $3,000 USD – significantly stronger than gold’s 70% increase. But here’s the drama: after this rocket start, there was a 35% correction within days. By early May 2026, the price hovers around $2,000-$2,100 USD. That’s not for the faint of heart.

Why this volatility? The platinum market is much less liquid than gold – only about 73,500 NYMEX contracts in circulation. That means small buys or sells can trigger massive price movements. Plus, structural factors come into play: South Africa produces 70-80% of the global supply but struggles with power outages and underinvestment. At the same time, demand is diverse – automotive industry, medical, jewelry, and increasingly hydrogen technology.

The interesting part: While gold mainly serves as an inflation hedge and investment, platinum has real industrial applications. That doesn’t necessarily make it better, but different. Between 2011 and mid-2025, platinum was the worse choice – the price stagnated around $1,000 USD, while gold hit new record highs. Now the tide is turning, but no one knows if it will last.

For 2026, the World Platinum Investment Council expects a balanced market (7,385 koz demand vs. 7,404 koz supply). After 2026, deficits are expected again until at least 2029. That could be bullish. But analysts are divided: Heraeus forecasts $1,300-$1,800 USD, Bank of America sees $2,450 USD, Commerzbank only $1,800 USD. This shows the uncertainty.

Who should invest? For active traders, platinum is interesting because of its volatility – CFDs with leverage enable quick gains but also quick losses. Risk management is essential: risking a maximum of 1-2% of capital per trade, setting stop-losses. For conservative investors, platinum could be a small addition to diversify the portfolio – it often moves counter to stocks.

My assessment: The question isn’t whether platinum is more expensive than gold (it isn’t), but whether structural supply shortages push prices upward or substitution and weaker demand push them down. The coming months will show whether platinum investors are rewarded or punished. Extreme caution is advised.