I just looked at the price performance over the past few months and have to say: platinum prices pulled off a remarkable rally in 2025. From below 1,000 USD in June to almost 2,925 USD at the beginning of January—that’s intense. But what fascinates me even more is the relationship between platinum and gold. While gold continues to dominate the headlines and reaches new all-time highs, platinum is more of a radar-skip.

That said, you shouldn’t underestimate platinum. In fact, this precious metal is rarer than gold, and industrial demand has a completely different structure. Platinum is not only hoarded as an investment asset, but is also actively used in the automotive industry, medicine, and chemical production. Still, platinum trades at a discount to gold—a historical phenomenon that has persisted since 2011.

The numbers are fascinating: Over a ten-year period, gold significantly outperformed platinum, gaining plus 331 percent versus plus 132 percent. But in the last year? Platinum gained 110 percent, while gold rose by only 70 percent. This shows that the platinum price vs. gold comparison isn’t that straightforward—it depends on the timeframe.

What sparked the platinum rally? Several factors came together: South Africa, which supplies about 70 to 80 percent of global production, had massive production problems. In 2025, mine output fell by 5 percent—the lowest level in five years. At the same time, a structural deficit of an estimated 692,000 ounces emerged. On top of that came geopolitical tensions, a weak dollar, and massive ETF inflows. A perfect storm for platinum.

Then came the sharp correction in January. The price plunged from 2,925 USD to below 1,900 USD—a drop of more than 35 percent in just a few days. This shows the extreme illiquidity of the platinum market. With only about 73,500 open NYMEX contracts, the market is significantly thinner than the gold market. That amplifies both upward and downward moves massively.

For 2026, the World Platinum Investment Council expects an almost balanced market. Total demand is estimated at 7,385 Kiloounzen, and supply at 7,404 Kiloounzen. That’s a drastic change from the deficit year 2025. Demand is expected to fall by 6 percent, mainly because investment demand could drop by 52 percent. On the other hand, mine production is expected to grow by about 2 percent.

What about the platinum price relative to gold? That’s the million-dollar question. Analysts don’t agree. Heraeus Precious Metals forecasts 1,300 to 1,800 USD, Bank of America sees 2,450 USD, and Commerzbank expects 1,800 USD. This range shows the uncertainty.

What’s interesting is this: Even after the strong rally, in early 2026 gold is still more expensive than platinum by more than 2,700 USD per troy ounce. So the platinum vs. gold ratio remains unfavorable for platinum, even though the precious metal is rarer.

Long term, this could change. WPIC expects that platinum deficits will return after 2026 and persist until at least 2029. The hydrogen economy could become a major demand driver—the WPIC forecasts an additional platinum requirement of 875,000 to 900,000 ounces by 2030 driven by fuel-cell vehicle and electrolyzer usage.

For traders, platinum could be interesting. The high volatility offers trading opportunities, especially with leverage via CFDs. But be careful: illiquidity can lead to extreme price swings. A simple strategy is trend following with moving averages—fast MA at 10, slow MA at 30. If the fast crosses above the slow MA from below, that’s a buy signal. Conversely, it’s a sell signal.

Risk management is crucial. For each trade, you should risk a maximum of 1 to 2 percent of your total capital. A stop-loss 2 percent below the entry price makes sense. With total capital of 10,000 Euro and 1 percent risk per trade, that’s a maximum loss of 100 Euro per position.

For more conservative investors, platinum could be an allocation/add-on to an existing portfolio. Platinum has its own supply-and-demand dynamics and sometimes moves in the opposite direction to stocks. That makes it, under certain circumstances, an interesting hedge. Platinum ETCs, physical platinum, or platinum stocks are suitable instruments.

The most important takeaway: The platinum price vs. gold comparison shows that both precious metals have different strengths. Gold is more stable and inflation-protected. Platinum offers higher volatility, but also higher potential—if you manage the risks. The coming months will show whether platinum continues its rally or whether further corrections occur. The structural supply shortage remains a supporting factor, but weaker demand could pressure prices. Anyone looking to invest should think through their strategy carefully and monitor lease rates as a market indicator.