I just looked at the current market development in precious metals and have to say: The dynamics between gold and platinum are currently absolutely fascinating. While gold continues to dominate the headlines, something really interesting is happening with platinum – and many investors completely miss it.

Let me break that down: Gold is currently trading around $4,850 per ounce, after reaching a new all-time high of over $5,500 at the beginning of the year. Silver was also wild – briefly over $110, then corrected to around $77. But platinum? That’s the real story here.

The interesting thing about the gold vs platinum price comparison is the historical perspective. In 2014, platinum was still significantly more expensive than gold – over $1,500. Then came a long period of stagnation. Between 2015 and mid-2025, platinum simply didn’t move, while gold climbed from high to high. The platinum-to-gold ratio has been below 1 since 2011, meaning: gold outperformed.

But from June 2025, things got wild. Platinum broke out of its trading range and gained over 100%. In January, it reached $2,925 – a new all-time high. That was an increase of over 200% since the start of 2025. Then came the correction: within six days, the price fell by up to 35.7% to $1,882 before rebounding. It’s now hovering around the $2,000–$2,100 mark.

What triggered this? Several factors played together. South Africa, which supplies 70-80% of global platinum production, had only 5% less mining output in 2025 – but that was structurally limited. At the same time, there was a third consecutive year of supply deficit (estimated 692,000 ounces). The physical scarcity was extreme – evident in the high lease rates. Geopolitical tensions, a weak US dollar, and surprisingly stable demand, especially in China and the jewelry sector, also contributed.

The gold vs platinum price comparison also shows: gold is still about $2,700 per ounce more expensive than platinum. That’s the largest absolute gap in the history of both metals, despite the extreme platinum rally.

What makes platinum so different? Unlike gold, platinum is not just an investment asset – it’s also a consumable. The automotive industry needs it for catalysts, medicine for implants, chemistry for fertilizers. And now hydrogen is added to the mix. The World Platinum Investment Council expects an additional demand of 875,000 to 900,000 ounces by 2030 from fuel cells and electrolyzers. That’s bullish in the long term.

For 2026, it will be interesting: WPIC expects a nearly balanced market with a small surplus (20 koz). That’s a contrast to the deficit year 2025. Demand is expected to fall by 6% (especially investment demand -52%), while supply could increase by 4%. But after that? WPIC forecasts deficits returning at least until 2029.

Analysts are divided: Heraeus says $1,300–$1,800, Bank of America $2,450, Commerzbank $1,800. This shows the uncertainty surrounding the metal.

What I find important: The platinum futures market is significantly less liquid than the gold market. With only about 73,500 NYMEX contracts (roughly $8.3 billion in value), movements in either direction are massively amplified. That explains the extreme volatility of recent weeks.

For traders, the volatility could be interesting. A simple strategy: trend following with moving averages (10-day and 30-day MA). When the fast crosses above the slow from below, it’s a buy signal. When it crosses below, it’s a sell signal. Using leverage (e.g., 5x), you can trade with less capital. But: risk management is critical. Risk only 1-2% of total capital per trade, set stop-losses. With €10,000 capital and 1% risk per trade = maximum risk of €100.

For more conservative investors, platinum could work as a portfolio addition. It has its own supply and demand dynamics and sometimes moves counter to stocks. That can be interesting as a hedge, especially for US stock portfolios. ETCs, ETFs, or physical platinum are the instruments of choice here.

The question of gold vs platinum price is therefore not so simple to answer. Gold is more stable, more established, inflation-protected. Platinum is more volatile but has enormous industrial potential and structural scarcity. 2025 showed that platinum can catch up – with over 100% gains. But it also comes with significantly higher risk.

Important: The Federal Reserve’s monetary policy remains a major factor. A weak dollar supports platinum, a strong dollar depresses it. Geopolitical tensions (US-Iran, trade conflicts) remain central. And substitution risks – at high prices, automaker catalyst producers might switch to palladium.

My takeaway: platinum is not for everyone. But as an active trader or as a small portfolio addition for long-term investors, it could make sense. The structural scarcity remains, the hydrogen story is real, and the price volatility offers opportunities. Just be aware: this is not a stable gold investment. It’s for people who understand volatility and can handle it.