Platin Market 2025: Why Investors Are Re-Discovering This Precious Metal

While gold price and silver price continuously make headlines, platinum is experiencing a quiet renaissance. In July 2025, platinum is trading at around $1,450 per ounce — a jump of over 50% since the beginning of the year. But behind this impressive development lies more than just speculation: a fundamental supply deficit, supply chain issues, and a renewed demand from industry and jewelry sectors.

Three reasons for platinum’s price explosion

The current rally of platinum price is based on three pillars. First, a structural deficit is emerging: total demand for 2025 is projected at 7,863 koz, while supply only reaches 7,324 koz. These supply shortages primarily originate in South Africa, the world’s largest producer.

Second, the extreme physical scarcity plays a role. Lease rates — an indicator of market stress — are unusually high, indicating that market participants are actively building positions. At the same time, a weak US dollar provides additional buying impulses, especially from international investors.

Third, capital is flowing back into the platinum market. ETF inflows are increasing, and geopolitical tensions are prompting investors to diversify into less prominent precious metals. Unlike gold, which primarily functions as a store of value, platinum combines investment potential with genuine industrial demand.

Uses of platinum in industry and future technologies

Here lies an often overlooked strength of platinum: its diverse economic platinum use. While gold price analyses mostly focus on capital market dynamics, platinum is supported by concrete demand.

In the automotive industry — still the largest application with 41% of total demand or 3,245 koz — platinum is used in diesel and gasoline catalysts. Despite electric mobility trends, catalysts for conventional engines remain relevant for years to come.

The jewelry industry accounts for (25% demand, 1,983 koz), valuing platinum for its purity and durability. Unlike gold, platinum is perceived less as a fashion item and more as a luxury good. Its timeless elegance makes it attractive to discerning buyers.

New and growth-oriented is platinum’s role in green technologies: fuel cells for hydrogen drives, green hydrogen itself, and chemical catalysis processes. These segments could provide additional demand impulses in the medium term.

The medical industry uses platinum for dental and surgical implants — a stable, albeit smaller, demand source.

This combination of established industrial demand and future-tech potential fundamentally differentiates platinum price dynamics from pure investment precious metals.

From tsar mints to modern market phases: platinum’s cursive history

The investment history of platinum is younger than that of gold or silver. While the first gold coins were minted as early as the 6th century, platinum as a physical investment asset only began in the 19th century — with Russian coins as the only European reference.

In 1845, Russia ceased exports and shortly thereafter stopped coin minting. A massive price decline followed. Recovery only came in the 20th century when European monarchies discovered platinum for their jewelry collections. The simplicity of the metal emphasized the brilliance of their diamonds optimally.

Industrial revolutionarily, 1902 saw the patenting of the Ostwald process for large-scale nitric acid production — the starting signal for platinum’s use in automotive technology. In 1924, platinum experienced its first major boom: it was six times higher than the gold price at the time.

World wars and crises interrupted this upward trend. The real renaissance only began around 2000. From 2000 to March 2008, platinum experienced an unprecedented surge: reaching an all-time high of $2,273 per ounce. This disproportionate increase was driven by two reasons — the financial crisis unsettled investors (flight into tangible assets), and economic volatility boosted platinum use in industry.

Afterward, a long consolidation phase followed. From 2011 to 2024, the platinum-gold ratio was negative — the longest such period in the price history of both metals. The reason: weak automotive industry, lower diesel catalyst demand, and gold’s superior marketing as a “safe haven.”

In 2025, the narrative changed. The jump from $900 (January) to $1,450 (July) shows that market participants again see the added value — both as an investment object and through its platinum use in strategic sectors.

Supply scenarios and price forecast for 2025-2026

The World Platinum Investment Council expects a deficit of 539 koz for 2025. Notably: supply grows by only 1%, while the recycling segment could expand by up to 12%. This asymmetry indicates structural production bottlenecks that cannot be remedied in the short term.

Demand shows a nuanced picture. Automotive (+2%) and jewelry (+2%) are growing moderately, while investment (+7%) is increasing significantly more. Industry shrinks by -9%, so total demand only falls by -1%. This decline could be temporary if US or Chinese industry unexpectedly picks up.

The scenario until 2029 remains characterized by a structural deficit — but with an opportunity: if the global economy picks up, industrial companies will need to ramp up their catalytic processes. Then, platinum use in energy transition and hydrogen technology could accelerate.

The downside risk is also real. Profit-taking after a 50%-increase since January could trigger a consolidation phase. The USD weakness could reverse. Trade disputes between the US and China could potentially dampen industrial demand.

For conservative scenarios, a price level between $1,200-$1,400 is realistic. With positive economic dynamics, $1,600+ is achievable. Key will be how lease rates develop — they are the early warning system of the platinum market.

Investment options: Which strategy suits me?

Passive wealth builders: Platinum ETCs and ETFs enable uncomplicated participation without physical storage. These instruments directly reflect the platinum price and can be easily integrated into a securities portfolio. Beginners benefit from simple handling.

Long-term diversifiers: Physical platinum (bars, coins) are suitable as a portfolio addition. The supply/demand dynamics and partial counter-correlation with stocks create hedging effects. A portfolio share of 3-7% can modulate volatility. Regular rebalancing is important.

Active traders: CFD trading with moderate leverage (x2-5) exploits platinum’s volatility. Trend-following strategies with moving averages (10 and 30 MA) work well: buy signal when breaking upward, sell signal when breaking downward. Strict risk management is essential: risking a maximum of 1-2% of total capital per trade. A stop-loss at 2% below entry protects against total losses.

Example calculation for leveraged positions:

• Total capital: 10,000 EUR
• Maximum risk per trade (1%): 100 EUR
• Leverage: x5
• Stop-loss: 2% below entry → would mean a 10% position loss
• Maximum position size: 1,000 EUR

Speculators on derivatives: Futures and options are suitable for experienced investors with high risk appetite. Complex financial instruments carry disproportionate profit and loss potential.

Opportunities and risks of platinum investment

Opportunities arise from the deficit scenario: structural undersupply supports prices in the medium term. Platinum use in hydrogen and catalysis is growing. ETF inflows are still in early stages — upward potential exists. A possible economic revival could cause industrial demand to explode.

Risks: profit-taking after a 50%-rise is likely. Economic shocks in China or the US could depress industrial demand. A USD recovery would weigh on dollar-denominated commodities. Technological substitution (less catalysts due to e-mobility) will change demand structure long-term.

Volatility remains high — more than gold or silver. This offers active traders opportunities but can also cause headaches for conservative investors.

Conclusion: An underestimated metal on the rise

Platinum deserves renewed attention. The combination of physical supply deficit, revived investor interest, and concrete industrial platinum use creates a new foundation for price stability. The platinum price of currently $1,450 is not a ceiling but a start for a multi-year repositioning.

Whether as CFD speculation, ETF addition, or physical coin — platinum offers relevant options for different investor types. The most important: develop a conscious, risk-tolerance aligned strategy and not follow the price trend euphoria blindly.

The next two to three years could belong to the platinum market. Those willing to think beyond gold and silver prices could benefit from this revaluation.