Platinum vs Gold 2025: Investment Value Comparison and Market Outlook Analysis

Precious Metals Market Continues to Heat Up: Can Platinum Keep Up with Gold’s Rally?

The precious metals market in 2025 is performing remarkably well. Gold prices have surpassed the $3,300 per ounce mark, and silver has broken through the $38 level. However, in this rally, platinum, although also a traditional investment metal, has long been overlooked by investors. Interestingly, platinum’s rarity is actually higher than gold—so which is more expensive, gold or platinum? The answer to this question is beginning to change.

Historical Comparison: Why Did Platinum Outperform Gold Before but Fall Behind Later?

In 2014, platinum was the most valuable precious metal, with prices exceeding $1,500 per ounce, far above the gold price at that time. But over the past decade, their trajectories have diverged—gold has soared steadily, while platinum has experienced volatility.

The Glorious Path of Gold: Since 2019, gold has continuously hit new highs, recently surpassing $3,500 in April 2025. This sustained upward trend is driven by demand for inflation hedging and uncertainty in capital markets.

The Bumpy Journey of Platinum: In early 2020, platinum prices even fell below $600, then hovered around $1,000 for a long period. The main reason for this predicament was the decline in demand for diesel vehicles—platinum is widely used in diesel catalytic converters. However, the situation began to reverse rapidly from early 2025. Platinum prices surged from $900 in January to $1,450 in July, an increase of over 50%.

From “Is It Worth Investing?” to “How to Choose Investment Methods”

Physical Holding

Buying platinum bars, coins, or jewelry is the most direct approach, obtainable through precious metals dealers, banks, or online platforms. However, safety storage and transaction costs tend to be high.

Funds and Exchange-Traded Certificates

Platinum ETFs/ETCs eliminate the need to handle physical metal, making them easy to include in investment portfolios, suitable for beginner investors. These instruments are highly transparent and easy to operate.

Company Shares

Investing in stocks of platinum mining companies allows indirect market participation. This method requires more in-depth fundamental analysis of the companies.

Derivative Trading

Futures and options are suitable for experienced investors. CFDs (Contracts for Difference) offer active traders opportunities to leverage small capital for larger gains—opening positions with leverage can amplify profits, but also increases risks.

Deep Reasons Behind the 2025 Platinum Price Surge

The 50% increase this year is no coincidence but the result of multiple factors:

• Supply Crisis Worsening: Major producers like South Africa face structural difficulties, making it hard to significantly increase annual output.
• Steady Demand: The Chinese jewelry market and industrial applications remain resilient.
• Weakening US Dollar: Commodities priced in USD benefit from a weaker dollar.
• Increased Investment Inflows: ETFs have absorbed large amounts of capital, pushing prices higher.
• Geopolitical Risks: Global tensions boost safe-haven demand.

According to the World Platinum Investment Council, the total demand in 2025 is projected at 7,863 thousand ounces, while supply is only 7,324 thousand ounces, creating a gap of 539 thousand ounces. This structural deficit, combined with physical shortages (high leasing rates confirm this), supports rising prices.

Demand and Supply Outlook

Annual demand is expected to decrease by 1% to 7,863 thousand ounces, mainly due to a -9% decline in industrial demand. However, supply is even tighter, with only a 1% growth, meaning the gap will persist long-term. Recycling markets may become a bright spot, with growth expected to reach 12%.

US-China trade relations and industrial policies will be key variables in the second half of the year—if both countries’ industrial sectors grow unexpectedly, platinum demand could reverse upward.

Mid-term Outlook and Risk Warnings

The second half of 2025 may face consolidation pressures. While physical deficits and a weak dollar support the rally, significant speculation has also driven prices higher. Profit-taking could occur. The next wave of market movement will depend on the dollar trend, demand stability, and supply recovery progress.

Investors should closely monitor leasing rates—this is a barometer of market tension.

Strategy Recommendations for Different Types of Investors

Active Traders

The high volatility of platinum creates trading opportunities. Trend-following strategies (fast MA 10 and slow MA 30 crossovers) perform well with platinum.

Risk management must be strict:

• Single position size: 1-2% of total capital
• Set stop-loss points (usually 2% below entry price)

Example:

• Total account: €10,000
• Max loss per trade (1% risk): €100
• Leverage: 5x
• Position size limit: €1,000 (trigger stop-loss if a 2% drop occurs, equating to a 10% position loss)

Conservative Investors

Use platinum as a complementary asset in the portfolio (5-15%), leveraging its independent supply-demand dynamics and sometimes inverse correlation with stocks for hedging. Tools include platinum ETFs, physical holdings, or mining stocks. Regular rebalancing is important to manage increased portfolio volatility.

Disclaimer: Precious metals prices are subject to market fluctuations and may lead to losses. Investors should fully understand their risk tolerance before investing.