Platinum is no longer to be overlooked – and this is new. While the precious metal stood in the shadow of gold and silver for years, it suddenly had a wild rally in 2025. At the beginning of the year, it was just under $900 per ounce, but by January, the price shot up to over $2,900 – an increase of over 200 percent. Then came the shock: within six days, the price fell by 35 percent. Anyone who sees this rightly asks: Is platinum really worth investing in as a store of value?

What’s interesting is: platinum was long the most valuable precious metal of all. In 2014, it was still trading well above gold. But over the last ten years, it has lost significant ground. Gold steadily increased – by 331 percent in the last decade – while platinum lagged far behind at only 132 percent. Even more striking: between 2015 and mid-2025, platinum simply hovered around the $1,000 mark. Many investors have simply forgotten about the precious metal.

So what has changed? The reason for the sudden renaissance of platinum as an investment is a perfect mix of several factors. South Africa, which supplies 70 to 80 percent of the global production, is struggling with power outages and underinvestment – production fell by 5 percent in 2025. At the same time, there was extreme physical scarcity. Geopolitical tensions, a weak dollar, and surprisingly stable demand from China also played a role. But most importantly: after gold exploded, investors were looking for cheaper precious metal alternatives. Suddenly, platinum became interesting again.

Historically, this is not so surprising. Platinum has a fascinating history. In the 19th century, only Russia minted platinum coins – that was the only way Europeans could own the metal at the time. Then export was banned, leading to a massive price collapse. It wasn’t until the 20th century that platinum made its comeback, as monarchies discovered it for their jewelry collections and industry needed it for telegraphs and later for catalytic converters. In 1924, platinum reached six times the gold price. In 1902, the patenting of the Ostwald process laid the foundation for platinum in the automotive industry – a business that continues to this day.

But here’s the problem: unlike gold, platinum is not just an investment asset but also a consumable good. 39 percent of demand comes from the automotive industry – mainly for diesel catalysts. In recent years, this sector has weakened brutally. That’s why platinum’s investment appeal remained unattractive for a long time. But this might be changing: the World Platinum Investment Council expects that fuel cells and green hydrogen will require an additional 875,000 to 900,000 ounces of platinum by 2030. That could be a real game-changer.

What about 2026? Predictions vary wildly. Heraeus Precious Metals expects $1,300 to $1,800, Bank of America sees $2,450, Commerzbank forecasts $1,800. WPIC anticipates a nearly balanced market – the first after three years of deficits. But here’s the thing: supply remains structurally strained. South Africa faces massive operational problems. Demand could decline by 6 percent, but investments in bars and coins are expected to grow by 30 to 37 percent.

The extreme volatility of recent months highlights a major problem: the platinum futures market is much less liquid than the gold market. With only 73,500 open NYMEX contracts (roughly $8.3 billion in value) compared to over $200 billion in gold, every movement is amplified. This makes platinum interesting for active traders but risky for conservative investors.

For traders, platinum is currently an attractive store of value. The high volatility creates trading opportunities. CFDs with leverage are popular – you can take large positions with small investments. A simple strategy is trend-following with moving averages: when the fast 10-day average crosses above the slow 30-day average from below, it’s a buy signal. You open a leveraged position, hold it until the fast average crosses below again. The most important thing: risk management. Risk no more than 1 to 2 percent of your total capital per trade, always set a stop-loss.

For more conservative investors, platinum can be a useful addition to a portfolio. It has its own supply and demand dynamics and sometimes moves counter to stocks – which can serve as a good hedge. Platinum ETFs, ETCs, or physical platinum are suitable for this. But caution: higher volatility also increases portfolio risk. Regular rebalancing is essential.

The conclusion on platinum as an investment is nuanced. Yes, platinum offers massive opportunities – hydrogen economy, rarity, structural scarcity. But it is also significantly riskier and more volatile than gold. The past months have shown that 40 percent gains and 35 percent losses can happen within days. Anyone working with platinum must know what they’re getting into. It could be exciting for traders. For long-term, conservative investors, caution is advised – but a small allocation to platinum can be quite interesting. The question is no longer whether platinum is a store of value, but whether you can handle the volatility.