Platinum or Gold – Which investment will bring better returns in 2025?

The traditional precious metals are currently experiencing a renaissance in the markets. The gold price has surpassed the $3,300 per ounce mark, and silver is trading above $38. While gold and silver regularly come into investors’ focus, platinum is often overlooked despite its fascinating properties – unfairly so, as the market development in 2025 shows.

The surprising rebound: Why platinum will be interesting in 2025

For a long time, platinum was considered the more valuable precious metal. In 2014, it was still trading well above the gold price at the time. However, the past few years have been frustrating for platinum investors: while gold showed a continuous upward trend and reached a new all-time high of over $3,500 in April 2025, platinum languished around $1,000. A dramatic price drop followed in 2020, when platinum temporarily fell below $600.

The turning point came in 2025: within a few months, platinum rose from just under $900 in January to about $1,450 in July – an increase of over 50 percent. This price jump is attributed to a combination of several factors:

• Supply shortages (especially in South Africa)
• Structural deficit between demand and availability
• Extremely tense physical market situation
• Geopolitical uncertainties
• Stable to increasing demand from China and the jewelry sector
• Weakening US dollar
• Strong ETF inflows in the investment sector

Gold versus platinum: Different advantages, different opportunities

Gold and platinum are both valuable raw materials, but their characteristics differ fundamentally. Gold is considered a classic inflation hedge and store of value – purely financial investment. Platinum, on the other hand, combines two roles: it functions as jewelry metal with timeless elegance but also has significant industrial relevance.

In the automotive industry, platinum is indispensable for diesel catalysts. At the same time, it is used in medicine for implants, in chemistry for fertilizer production, and increasingly in fuel cells and green hydrogen. The metal is also significantly rarer than gold – an advantage that paradoxically has not yet been reflected in its price.

The so-called platinum-gold ratio has been negative since 2011, making it the longest period of weakness in its history. The primary reason was the weakening diesel demand. However, 2025 shows a turning point.

How will supply and demand develop in 2025?

The World Platinum Investment Council expects total demand of 7,863 koz and total supply of only 7,324 koz in 2025 – a deficit of 539 koz. The supply is expected to grow by only 1 percent, reflecting the structural problems in platinum mining.

The recycling sector is particularly interesting: it could expand by up to 12 percent in 2025. Demand is expected to decline slightly by 1 percent, but the distribution is revealing:

• Automotive industry: 41 percent of demand (2 percent growth)
• Industry: 28 percent (minus 9 percent – the critical point)
• Jewelry: 25 percent (2 percent growth)
• Investments: 6 percent (7 percent growth)

The industrial sector is driven by US-China trade relations. If industrial growth exceeds expectations, platinum prices could rise significantly. Conversely, trade conflicts could push prices down.

Investment opportunities: Which strategy suits whom?

There are different approaches for various types of investors:

Physical holdings: Platinum in the form of coins, bars, or jewelry can be purchased from precious metal dealers, banks, or online platforms. However, secure storage involves significant transaction and storage costs.

ETFs and ETCs: These products track the price development of platinum and can be easily integrated into a securities portfolio – ideal for beginners in the stock market.

Mining stocks: Investing in platinum mining companies offers indirect exposure with profit potential through operational improvements.

Futures and options: For experienced speculators betting on future price movements. These complex instruments are high-risk and require solid market knowledge.

CFDs (Contracts for Difference): These derivatives enable speculation with leverage. With a small capital outlay, large positions can be controlled – offering higher return opportunities but also significant risks.

Active traders versus conservative investors

For active traders, platinum is attractive due to its increased volatility compared to gold or silver. Interesting trading setups often emerge. A proven strategy is trend-following with moving averages (fast: 10, slow: 30). When the fast crosses above the slow from below, a buy signal is generated.

Professional risk management is crucial: never risk more than 1–2 percent of total capital per trade. A stop-loss (for example, 2 percent below entry price) automatically limits losses.

Conservative investors should consider platinum as an addition. The metal follows its own supply-demand dynamics and sometimes correlates negatively with stocks – valuable for portfolio diversification and as a hedge. Platinum ETCs, physical platinum, or mining stocks are suitable. The exact weighting should be individualized; regular rebalancing is recommended.

The key question: Gold or platinum in 2025?

The answer depends on the investor type. Gold remains the safe haven in uncertain times – inflation-protected, liquid, relatively stable. Platinum is more volatile, but 2025 shows a turning point: the combination of genuine physical scarcity, stable demand, and a weak US dollar creates a scenario where platinum has catch-up potential.

For this year, it will be crucial how the US dollar, the global economy, and the supply situation develop. Investors should monitor lease rates in the platinum market as an indicator – they reveal how tense the physical availability truly is.

A portfolio combining both metals could offer the best risk-return profile in 2025.