## Platinum Price 2025: The Underestimated Opportunity Compared to Gold?

The precious metals markets are currently in an exciting phase. **Gold** has broken through the $3,300 per ounce mark, **Silver** is climbing above $38, but one metal is being overlooked by many investors: **Platinum**. Now might be the perfect time to explore this precious metal—especially when looking at its price development since the beginning of the year.

## From Obscurity to Attention: The Platinum Price Story 2025

While **Gold** continuously hits new all-time highs and surpassed the $3,500 mark in April 2025, **Platinum** long remained in the shadows. But 2025 seems to be a turning point: The **Platinum price** has risen from just under $900 in January to about $1,450 in July 2025—a gain of over 50% within a few months.

This development is no coincidence but the result of several interacting factors:

- **Physical Scarcity**: Extreme shortages in production, especially in South Africa
- **Structural Deficit**: Demand significantly exceeds supply
- **Geopolitical Uncertainties**: Supply chain risks intensify scarcity
- **Strong Demand from China and the Jewelry Sector**: Surprisingly robust despite economic challenges
- **Weak US Dollar**: Makes precious metals more attractive to international buyers
- **Massive ETF Inflows**: Significant institutional interest in the platinum market

## How to Invest in Platinum in 2025: The Main Ways

Investors have various options to benefit from the platinum trend:

**Physical Platinum**: The traditional route via coins, bars, or jewelry from precious metals dealers or banks. Disadvantages: storage and insurance costs extra.

**Platinum ETFs and ETCs**: The simple alternative for those who do not want to store physical metal. These products track the **Platinum price** development and can be easily integrated into a portfolio—even suitable for beginners.

**Mining Company Stocks**: Those looking to profit from growing platinum demand and scarcity can invest in platinum producers.

** CFDs and Leverage Instruments**: Interesting for experienced traders aiming to speculate on short-term price movements. CFDs allow building large positions with smaller capital outlays—though with higher risk.

**Futures and Options**: Complex financial instruments for professional investors betting on future price movements.

## The Volatility Question: Platinum vs. Gold in a Long-Term Comparison

The interesting point: **Platinum** is rarer than **Gold** but is valued significantly lower. While **Gold** has been reaching new highs since 2019, the **Platinum price** remained around the $1,000 mark for a long time. The so-called platinum-gold ratio has been negative since 2011—the longest period in the history of these two precious metals.

The main reason lies in the weak automotive industry, which uses platinum for diesel catalysts. But 2025 shows: the situation is changing. The combination of physical scarcity, stable jewelry demand, and growing investor interest is pushing the price upward.

## Historical Perspective: Why Platinum Was Undervalued

**Platinum** as an investment is still young. While gold coins have been minted since the 6th century, **Platinum** only appeared in the 19th century. The first government-issued platinum coin came from Russia—in Europe, this was initially the only way to own the metal.

In 1845, Russia halted exports and minting, leading to a price decline. Only in the 20th century did **Platinum** experience a renaissance: monarchies loved it for their jewelry collections, and industrial companies discovered its value for telegraph wires and filaments.

The major turning point came in 1902 with the patenting of the Ostwald process—**Platinum** became a key component for catalysts in the automotive industry. By 1924, the **Platinum price** had reached six times the gold price.

Recent years have been challenging, but 2025 could mark a new chapter.

## The Forecast for 2025: What Experts Expect

The World Platinum Investment Council expects total demand of 7,863 kilounzen of fine platinum in 2025, while supply will only reach 7,324 kilounzen. This indicates a programmed deficit of 539 kilounzen.

Demand is distributed as follows:

- **Automotive Industry**: 41% (3,245 koz) – with 2% growth
- **Industry**: 28% (2,216 koz) – with an expected -9% decline
- **Jewelry**: 25% (1,983 koz) – with 2% growth
- **Investments**: 6% (420 koz) – with 7% growth

Supply is expected to grow by only about 1%, due to structural production issues. However, the recycling market could grow by up to 12% in 2025 and help alleviate some shortages.

**Overall forecast: Neutral to slightly positive.** The **Platinum price** could stay stable or continue to rise—especially if industrial demand exceeds the expected -9%. A significant uncertainty factor is US-China trade relations and their impact on industrial production.

**Important warning (July 18, 2025)**: After the massive price gains since the start of the year, there is an increased risk of consolidation. Besides genuine market deficits and dollar weakness, speculative bubbles have also formed. Profit-taking could push prices down. Lease rates for platinum should be monitored as an indicator.

## How Active Traders Can Trade Platinum Effectively

For active traders, the high volatility of **Platinum** compared to other precious metals offers interesting opportunities. A proven strategy is trend following with moving averages:

Using a fast (10) and a slow (30) moving average: When the fast MA crosses above the slow MA from below, it’s a buy signal. For example, with 5x leverage, a position can be built. When the fast MA crosses below the slow MA again, it’s time to sell.

**Key risk management:**

- Risk only 1-2% of total capital per trade
- Always set a stop-loss (e.g., 2% below entry price)

**Example calculation:**
- Total capital: €10,000
- Max risk per trade (1%): €100
- Stop-loss: 2% below entry price
- Leverage: 5x
- 2% price drop = 10% position loss with leverage
- Max position size: €1,000

## Platinum as a Portfolio Diversifier for Conservative Investors

Those who prefer less aggressive trading can include **Platinum** as a diversification component in their portfolio. The metal has its own supply and demand dynamics and sometimes moves counter to stocks—making it an ideal hedge for a US equity portfolio.

Suitable instruments: platinum ETCs/ETFs, physical **Platinum**, or mining stocks. The portfolio allocation should be tailored individually, with regular rebalancing to keep volatility in check.

## The Conclusion: Is 2025 the Year of Platinum?

The **Platinum price** has impressively risen in 2025—from below $900 to over $1,450. The reasons are real: physical scarcity, structural supply deficits, geopolitical factors, and surprisingly stable demand.

Whether this momentum continues or profit-taking occurs depends on the dollar development, US-China trade relations, and industrial demand. For active traders, volatility offers opportunities; for long-term investors, a diversification component could be worthwhile.

The era of neglecting **Platinum** compared to **Gold** might be over—those wanting to seize the opportunities should closely monitor market developments.