Platininvestment 2025: Why the underrated precious metal is becoming interesting now

While gold and silver continuously reach new all-time highs – gold trading above $3,500 per ounce, silver over $38 – platinum in many investors’ portfolios is unjustly pushed into the background. Yet, this precious metal is showing unexpected momentum in 2025 and could become attractive for targeted investors.

The Surprising Price Rally: Platinum in July 2025

The development speaks for itself: while platinum was trading at just under $900 per ounce at the beginning of 2025, it reached the $1,450 mark in July – an impressive increase of over 50 percent. This movement is based on several interacting factors:

• Physical supply shortages, especially in South Africa
• Structural deficit between supply and demand
• Extreme scarcity in the cash market (ablesbar at high lending rates)
• Geopolitical uncertainties
• Robust demand from China and the jewelry segment
• Weak US dollar as a supporter
• Massive inflows into platinum ETFs

This constellation creates a kind of perfect storm for platinum, explaining the price movements since the start of the year.

Why Platinum Underperformed for a Long Time – and How This Could Change

Unlike gold, platinum is not only in demand as a store of value. Its value is largely derived from industrial applications: automotive industry (catalysts), medical technology (implants), chemical manufacturing (fertilizers), and green technologies (fuel cells, green hydrogen).

This was the problem in recent years. With the decline in diesel demand and weak industrial economic activity, platinum demand stagnated. In contrast, gold benefited from its role as a pure investment and crisis hedge instrument. Gold soared to new record highs from 2019 to 2025, while platinum hovered around the $1,000 mark.

For the first time since 2011, a trend reversal is emerging. According to the World Platinum Investment Council, a supply deficit of 539 thousand ounces is expected in 2025, with total demand of 7,863 koz compared to an offer of only 7,324 koz.

Investment Options: From Physical Holdings to Platinum Stocks

Investors have various ways to access the platinum market:

Physical platinum: Coins, bars, or jewelry can be purchased from dealers. The disadvantage is storage effort and associated costs.

Platinum ETFs and ETCs: These index products track the price development and can be easily integrated into a portfolio – ideal for beginners in commodities.

Platinum stocks: A less known but potentially lucrative option are platinum mining stocks. These offer leverage effects: with stagnant platinum prices, efficient producers can expand their margins; with rising prices, they benefit disproportionately. Due to geopolitical tensions and production uncertainties in South Africa (the world’s largest producer), this sector could attract additional attention in 2025.

CFD and futures trading: Experienced traders use leveraged instruments to speculate on price movements. The advantage: smaller capital outlay allows larger positions. The disadvantage: significant risk if risk management is neglected.

Trading Strategies for Platinum Volatility

The increased volatility in platinum creates interesting setups for active traders. A proven method is the trend-following strategy with moving averages: combining a fast (10-day) with a slow (30-day) moving average. A buy signal occurs when the fast MA crosses above the slow MA; a sell signal when it crosses below.

Example calculation with €10,000 total capital:

• Maximum risk per trade: 1% = €100
• With a 2% stop-loss and 5x leverage: maximum position size €1,000
• 2% price loss × 5 leverage = 10% position loss

Risk management is critical: never risk more than 1–2% of capital per trade, always set a stop-loss.

Platinum Forecast for 2025: Cautiously Optimistic

According to analysis institutions, the platinum deficit in 2025 will stabilize at around 539 thousand ounces. The supply volume will grow by only about 1% – structural production hurdles make faster capacity increases difficult. An exception: recycling volume could grow by up to 12%.

On the demand side, a slight decline of about 1% is expected. However, a surprise to the upside could occur if industrial demand picks up more strongly than currently forecasted (Forecast: -9%). Here, trade relations and economic development in China and the USA are decisive.

A risk lies in the current price speculation that has driven the price upward. Massive profit-taking could lead to consolidations by the end of the year.

Proper Positioning by Investor Type

For active traders: platinum offers attractive opportunities due to its volatility. CFDs or leveraged ETPs enable quick positions with good risk management.

For conservative portfolio managers: a 2–5% allocation can be sensible, as platinum sometimes moves counter to equity portfolios and thus functions as a diversifier. Here, well-structured platinum mining stocks, ETFs, or physical platinum combined with other precious metals are suitable.

For long-term hedge investors: the structural supply deficit until 2029 makes platinum interesting for inflation-protected portfolios – provided that industrial demand does not collapse permanently.

Key indicators for further development remain the US dollar’s price trend, demand stability amid trade tensions, and physical lending rates as a market stress indicator.