Platinum vs. Gold 2025: Which precious metal offers better return potential?

The Price Competition: Why Gold and Platinum Take Very Different Paths

The precious metals markets are experiencing an exciting turning point in 2025. While Gold continues to reach new record highs – surpassing the 3,500 USD mark in April 2025 – Platinum is undergoing a renaissance after years of stagnation. The contrast could hardly be greater: gold enjoys status as a safe investment and inflation hedge, while platinum is shaped by industrial demand and extreme rarity.

The current platinum price in July 2025 is around 1,450 USD per ounce – a significant increase of over 50% since the beginning of the year, when it was just below 900 USD. Gold, on the other hand, remains above the 3,300 USD threshold. But this comparison conceals a fundamental truth: platinum is actually rarer than gold, yet has long been valued significantly lower.

The Forgotten Raw Material History: Platinum in the Shadow of Gold

To understand the current dynamics, it’s worth looking at the historical paths of both metals. Platinum once dominated the precious metals market – in 2014, it traded at over 1,500 USD, well above gold. However, this dominance was short-lived. The situation reversed, and since then, platinum has struggled with persistent underperformance.

Platinum itself is a modern investment asset. While gold and silver have been minted since the 6th century, platinum only entered monetary circulation in the 19th century – initially only as a Russian state coin. Export bans and later minting restrictions led to enormous surpluses and a sharp price decline. The recovery only came in the 20th century with increasing industrial demand.

The turning point occurred in 1902 with the patenting of the Ostwald process for nitric acid production – platinum became indispensable for automotive technology. In 1924, the metal reached six times the gold price. In March 2008, platinum hit its all-time high of 2,273 USD – driven by financial crisis uncertainties and supply shortages.

But then followed a long drought: while gold has been reaching new highs continuously since 2019, platinum stagnated around the 1,000 USD mark. The platinum-to-gold ratio has been in the longest negative phase of its history since 2011.

Why Platinum Becomes Suddenly Interesting in 2025: The Perfect Storm

The recent rally is no coincidence but the result of several converging factors:

Structural Supply Deficit: For 2025, total demand is expected to be 7,863 koz, while supply is only 7,324 koz. A deficit of 539 koz is emerging. The supply side can only grow by about 1% – structural problems in platinum mining make rapid capacity increases impossible.

Extreme Physical Scarcity: High lease rates indicate acute supply shortages. This is a classic signal for price impulses.

Weak US Dollar: A lower dollar makes commodities more attractive to international buyers.

Geopolitical Volatility: South Africa, the largest platinum producer, is experiencing supply uncertainties.

Resurgence of Industrial Demand: Surprisingly stable demand, especially in China and the jewelry sector.

Generous ETF Inflows: The investment sector shows renewed interest, with ETF demand expected to grow by 7%.

These factors explain the strong price jumps since the beginning of the year much better than mere speculation.

Gold or Platinum? The Demand Drivers of 2025

While gold remains primarily a pure investment asset, platinum has a dual character. It is both a store of value and a consumable. The expected demand distribution in 2025:

• Automotive Technology: 41% of total demand (3,245 koz), +2% growth
• Industry: 28% (2,216 koz), -9% decline
• Jewelry: 25% (1,983 koz), +2% growth
• Investments: 6% (420 koz), +7% growth

The industrial decline is less severe than feared, while the investment sector is becoming increasingly active. This contrasts sharply with gold’s demand profile, which is driven almost exclusively by investment capital.

Investment Vehicles Overview: From Physical to Leveraged

Platinum can be integrated into a portfolio in various ways:

Physical Ownership: Coins, bars, or jewelry provide direct access but require secure storage and incur significant transaction costs.

ETCs and ETFs: Electronic funds track the price development and can be easily integrated into a depot. Suitable for beginners.

Platinum Stocks: Shares in mining companies offer indirect exposure.

CFD Trading: Tradable with leverage starting from 1 EUR. A popular strategy is trend-following with moving averages (faster MA at 10, slower at 30), where breakouts generate buy and sell signals. A leverage of 5:1 combined with conservative risk management (max. 1-2% risk per trade, stop-loss set) enables controlled trading.

Example: With a total capital of 10,000 EUR and 1% risk per trade = 100 EUR loss limit. With a 2% stop-loss and 5x leverage, the position can be a maximum of 1,000 EUR.

Futures and Options: For experienced speculators, but highly complex and risky.

The Platinum Forecast for the Second Half of 2025

The outlook remains neutral to slightly positive. Production bottlenecks are unlikely to resolve quickly – a structural undersupply until 2029 is probable.

Upside scenarios: If Chinese and US industrial production grow more strongly than expected, platinum could become significantly more expensive. The current expectation of a -9% decline in industrial demand offers upside surprise potential.

Downside risks: After rapid price gains, there is an increased risk of consolidation until the end of the year. Profit-taking could set in. Additionally, intensified US-China trade tensions could dampen industrial demand.

Critical indicators: Lease rates remain a key barometer of market tension. The US dollar exchange rate heavily influences foreign demand.

Strategies for Different Investor Types

For active traders: The increased volatility of platinum compared to gold or silver offers attractive swing-trading opportunities. CFD trading with moderate leverage and strict risk management suits this profile.

For conservative investors: A small allocation (to gold or platinum mixed) into an existing portfolio can provide diversification, as platinum sometimes reacts inversely to stocks and acts as a hedge. Platinum ETFs or physical metal are suitable here. Regular rebalancing and combining with other precious metals mitigate volatility risks.

The key insight: Platinum is not simply a silver alternative to gold. It is a standalone market with its own drivers. Those investing in gold or platinum should do so consciously and accept the differences between the two metals. There is no universal answer to the question “which metal is better?” – it depends on personal situation, time horizon, and risk tolerance.