Is platinum more valuable than gold? The detailed price comparison 2025

The precious metals markets are currently experiencing a fascinating development. The gold price remains stable above $3,300 per ounce, while silver has broken through the $38 mark. However, while these two classics regularly make headlines, platinum remains unknown to many investors – although the situation for this rare precious metal will fundamentally change in 2025.

Why Platinum Has Long Been in the Shadow of Gold

To understand the current market dynamics, a look back is worthwhile: for a long time, platinum was the most expensive precious metal overall. In 2014, platinum prices were still well above $1,500 per ounce – a multiple higher than gold at the time. But in the following years, a completely different development followed.

The price history of platinum is characterized by extreme fluctuations. While gold experienced an almost steady upward trend and recently reached a new all-time high of over $3,500 per ounce in April 2025, platinum moved more sideways. In early 2020, platinum even fell below the $600 mark, then stabilized around $1,000 for a long period.

This divergence has a simple reason: while gold primarily serves as an investment capital, platinum is a hybrid – combining investment properties with industrial demand. Particularly the weak diesel technology and the decline in demand for diesel catalysts have burdened platinum for years.

The Renaissance of Platinum in 2025

The year 2025 marks a turning point. In January, the price was just under $900 per ounce, and by (July 2025), platinum is trading at around $1,450 – an increase of over 50% within a few months. This is no random price movement, but the result of several interacting factors:

Structural supply shortages, especially in South Africa, where a large part of the world’s platinum production takes place, have led to physical scarcity. Lease rates are reaching extreme levels – a clear signal of shortages in the physical market.

Geopolitical uncertainties act as an additional driver, as does the currency dynamic: a weaker US dollar makes platinum more attractive to international buyers.

At the same time, surprisingly stable demand is evident – especially from China and the jewelry sector. The investment interest is increasing, as reflected in rising ETF inflows.

Platinum vs. Gold: The Fundamental Differences

The often-asked question of whether platinum should be more expensive than gold cannot be answered in a general way. Both metals serve different functions:

Gold functions as a universal store of value and inflation-protected investment haven. Its stability and acceptance make it the first choice for conservative investors.

Platinum is significantly rarer than gold and offers added value through industrial applications: catalytic converters in modern vehicles, medical implants, dentistry, chemical industry, and forward-looking technologies like fuel cells and green hydrogen. This diverse demand makes platinum a consumable with investment potential.

Especially interesting: The platinum-gold ratio has been negative since 2011 – the longest negative phase in modern price history. This means gold is overvalued relative to platinum, offering interesting entry points for patient investors.

The Trading History: From Rarity to Industrial Resource

Platinum’s path to the investment class is relatively young. While coins made of gold and silver have been minted since the 6th century, platinum has only been tradable since the 19th century. Russia minted the first state platinum coin – long the only source for Europeans.

In 1845, this changed radically: the Russian Empire banned the export and shortly thereafter the domestic production of platinum coins. The price plummeted. Only in the 20th century, when monarchies worldwide discovered platinum for their jewelry collections – due to its elegance and ability to make diamonds shine – did the metal gain new significance.

The economic breakthrough came in the early 20th century: platinum was used as a switch contact in telegraphs and as a filament in lamps. With the patenting of the Ostwald process in 1902, the foundation was laid for its use in automotive technology. The price exploded – in 1924, platinum reached six times the gold price!

After years of crises, the metal only stabilized again from 2000 onward. Between 2000 and March 2008, platinum experienced an unprecedented upward trend, culminating in an all-time high of $2,273 per ounce. This disproportionate value increase was a combination of crisis-driven capital flight and increased industrial demand during the economic boom.

Demand Trends for 2025 and Beyond

According to the World Platinum Investment Council, 2025 looks exciting: the projected total demand is 7,863 koz (kilounzen), while supply is expected to reach only 7,324 koz. This results in a deficit of 539 koz – structurally significant.

The demand distribution shows a nuanced picture:

The automotive industry remains the dominant sector with 41% (3,245 koz), but can only expect 2% growth. The traditional diesel technology is losing market share, but newer applications like fuel cells could offset this.

The industrial sector (28%, 2,216 koz) is forecasted to decline by -9% – a critical point, as opportunities are hidden here. If Chinese or US industry unexpectedly grows strongly, this could improve the overall forecast.

The jewelry sector (25%, 1,983 koz) shows stability with +2% growth.

The investment segment (6%, 420 koz) is experiencing a boom with +7% growth – an indicator of increasing confidence in platinum’s future potential.

Especially noteworthy: Recycling supply could grow by up to 12% in 2025, which could relieve the supply side in the long term.

Investment Opportunities: From Classic to Highly Speculative

Physical platinum (Bars, coins, jewelry): The most direct access, but requires secure storage and ties up capital.

ETCs and ETFs on platinum: Ideal for beginners and long-term investors. They enable straightforward integration into existing portfolios and mirror price movements one-to-one.

Shares of platinum mining companies: Offer leverage effects but are associated with company risks.

CFDs (Contracts for Difference): Allow profiting from platinum volatility with a small capital outlay. Leverage enables controlling large positions with minimal investment – but with correspondingly high risk.

Futures and options: For experienced traders looking to speculate on future price movements. These complex instruments offer high profit potential with high risk.

Trading Strategies for 2025

For active traders, a trend-following strategy with moving averages is recommended. The concept: combine a fast (10-day) and a slow (30-day) moving average. When the fast crosses above the slow, it’s a buy signal. The position is opened with moderate leverage (e.g., 5x). Sold when the fast average crosses below the slow again.

The critical element is risk management:

• Risk no more than 1-2% of total capital per trade
• Use stop-loss orders (e.g., 2% below entry price)
• Concrete example: With €10,000 capital and 1% risk (€100 per trade), with 5x leverage, the maximum leveraged position should be €1,000

Long-term Positioning: Portfolio Hedging

For conservative investors, platinum can be an attractive addition. Since the metal has its own supply-demand dynamics and sometimes moves inversely to stocks, it functions as a natural hedge. This is especially true for US stock portfolios.

The optimal weighting cannot be generalized – individual risk management is required. Combining with other precious metals and regular rebalancing reduces additional volatility.

Conclusion: Platinum 2025 and Outlook to 2029

The latest data from July 2025 indicates increased consolidation risk. While physical deficits and a weak US dollar justify the price recovery, there have also been extensive speculative purchases. Profit-taking could put pressure on gains in the second half of 2025.

Key factors for further development:

• US dollar stability: A stronger dollar weighs on platinum
• Demand stability: Especially the impact of US tariffs on China trade
• Supply recovery: Despite structural deficits, production capacities could recover by 2029
• Lease rates: A proven early indicator of market pressure

For investors, 2025 remains a year full of opportunities and risks. Whether platinum will become more expensive than gold in the long run depends on how strongly industrial demand surprises on the upside and whether the structural supply deficits persist. The conditions are in place – now it depends on execution.