I just realized something interesting—many people don’t know what “platinum” means or confuse it with white gold. Today, I’ll share what I’ve learned about platinum and why it has recently become a potential investment asset.

Platinum (also called “platinum”) is one of the rarest precious elements on Earth—only about 0.005mg/kg in the Earth’s crust. In pure form, it is gray-white, shiny, ductile, and malleable. The great thing about platinum is that it does not oxidize at any temperature, does not dissolve in common acids, has good electrical conductivity, and is very resistant to corrosion. Only strong halogen solutions or aqua regia can dissolve it.

In terms of supply, South Africa accounts for about 80% of global platinum production, mined mainly from nickel and copper ore deposits. Compared with gold and silver, platinum output is much lower—less than 100 times that of silver and 15 times that of gold. Platinum has a wide range of applications: the automotive industry accounts for more than 50% of production, along with high-end jewelry, medicine, and other industrial fields. That’s why platinum has become an extremely rare and valuable metal.

When it comes to price, platinum is truly different. In Vietnam, platinum is not sold as bars or pieces like gold, but only crafted into jewelry. For example, a platinum wedding ring of 19.625 (carat) is listed at about 14.99 million VND, equivalent to 76.38 million VND per tael or 63.35 million VND per ounce. This figure is 3 times higher than the global platinum price (around 914 USD/ounce at that time). The difference is because jewelry prices include manufacturing costs, not pure platinum itself. Therefore, many investors prefer to trade platinum through derivative instruments like CFDs to avoid these fees.

Looking at price history, platinum has had quite an interesting journey. From the 1970s, it was traded below 200 USD/ounce. In the early 1980s, platinum surged as investors recognized it, nearly reaching 1,000 USD/ounce. After that, it struggled around 400–600 USD until the end of the 20th century. The all-time high was in 2008, when it reached 2,270 USD/ounce—a surge supported by a weak U.S. dollar and concerns about supply chains in South Africa. But just a few months later, the price fell to 774 USD/ounce in November 2008 due to the financial crisis. From 2010 to 2015, platinum recovered, fluctuating around 1,400–1,600 USD/ounce. After 2015, like gold, it continued to face pressure as the U.S. Federal Reserve raised interest rates.

What’s interesting is that from late 2023 to now, when the Fed signaled it would cut interest rates in 2024–2025, prices of precious metals have risen again. Platinum has also been supported by concerns about global supply chains due to conflicts in Ukraine and the Middle East. Forecasts for 2024–2025 vary: LongForecast expects it to reach 1,064 USD in December 2024 and 1,085 USD by the end of 2025, while CoinPriceForecast says the price will be 1,061 USD by the end of this year and 1,170 USD by the end of 2025.

Compared with gold, the relationship between them is quite interesting. From the 1980s to 2015, they moved in the same direction. Until 2012, platinum was even more expensive than gold. But after 2012, gold regained its leading position because it is considered a safer-haven asset—one form of currency, a standard benchmark for the world. Platinum, on the other hand, is viewed as more of an industrial metal, with its price depending on global supply and demand. Evidence can be seen in 2018–2022, when the global economy was unstable (the U.S.–China trade war, the Covid pandemic, the Russia–Ukraine war): gold rose to a peak of 2,070 USD/ounce in March 2022, while platinum depended more heavily on industrial demand.

Compared with white gold, platinum is significantly more expensive. A 2mm ring with 14k white gold costs about 240 USD, 18k white gold is 580 USD, but platinum is 820 USD—3.5 times higher than 14k white gold. White gold is essentially gold alloyed with other metals (70–75% gold), coated with rhodium to achieve a light silver-white color.

Why am I interested in platinum? There are a few main reasons. First, it is 15 times rarer than gold, so it is also considered a safe-haven channel during times of economic uncertainty. Second, although the platinum market is less liquid than gold, its relatively high volatility creates greater profit opportunities. Third, platinum has high industrial applications—especially as the global push toward green hydrogen accelerates; demand for platinum in electrolysis equipment and fuel-cell vehicle production will increase. Fourth, when palladium prices rose sharply (reaching 3,300 USD/ounce in March 2022), automakers have been looking to replace it with platinum alloys, creating opportunities for increased demand in the future.

As for how to invest in platinum, there are several options. You can invest through ETFs such as PPLT, PLTM, PTM. Or trade futures contracts on exchanges like COMEX, NYMEX, TOCOM. Another option is to buy shares in mining companies such as Anglo American Platinum, Impala Platinum, and Sibanye Stillwater. Or you can use CFDs—contracts for difference—to trade without needing to own actual platinum; this helps save storage costs and allows you to trade in both directions.

Overall, platinum offers many advantages over gold and other precious metals. 60% of platinum demand comes from industry, so its volatility often tracks supply-and-demand conditions, making it easier for investors to analyze and forecast. In today’s economic context, platinum is definitely worth considering as part of your diversified investment portfolio.