Platin vs. Gold 2025: Which precious metal offers better returns?

What is More Valuable – Gold or Platinum? An Overview

The classic question that concerns every precious metals investor: What is more valuable – Gold or Platinum? At first glance, the answer seems simple – but reality is more nuanced. While Gold with over 3,500 USD per ounce (as of April 2025) cements its status as an inflation-protected currency, Platinum experiences a remarkable resurgence in 2025.

In fact, Platinum was until a few years ago the more expensive precious metal. In 2014, the Platinum price was still significantly above the Gold price – and in March 2008, platinum even reached its all-time high of 2,273 USD. Since then, platinum has steadily lost ground. For years, the price fluctuated around the 1,000-dollar mark, while Gold climbed inexorably upward.

The Surprising Price Rally of Platinum in 2025

The tide turns: In July 2025, Platinum is trading at around 1,450 USD – an increase of over 50% since the beginning of the year, when the price was just below 900 USD. This explosive rally is based on several factors: structural supply shortages in South Africa, extreme physical scarcity (evident in high lease rates), geopolitical tensions, surprisingly stable demand for jewelry and investment, as well as a weakening US dollar.

In contrast, Gold experienced a more moderate upward trend and only reached its all-time high in April 2025. The differing dynamics are explained by a fundamental characteristic: While Gold is primarily an investment asset, Platinum also serves as an industrial raw material with real consumption function.

Why Platinum Is Interesting as an Investment Asset

Platinum possesses a special added value that Gold cannot claim. This precious metal is used in the automotive industry (diesel catalysts), medicine (implants), chemical industry, and emerging technologies such as fuel cells and green hydrogen. Additionally, Platinum is significantly rarer than Gold – an aspect that underscores its long-term investment potential.

Industrial demand creates its own price dynamics: During upturn phases, supply deficits quickly emerge, leading to disproportionate increases in value. Long-term investors deliberately exploit this effect by buying during economic downturns and speculating on later outperformance.

Supply and Demand: The Deficit in 2025

According to the World Platinum Investment Council, 2025 is expected to see a total demand of 7,863 kilograms of platinum and a total supply of only 7,324 kilograms. The resulting deficit of 539 kilograms is likely to further boost prices.

Demand is distributed as follows:

• Automotive industry: 41% (3,245 koz) – with 2% growth
• Jewelry: 25% (1,983 koz) – with 2% growth
• Industry: 28% (2,216 koz) – with -9% decline
• Investments: 6% (420 koz) – with 7% growth

Particularly the investment sector shows dynamism, while industrial demand is under pressure. However, growth in Chinese and US industry could reverse this scenario.

The Historical Perspective: When Platinum Was King

To understand, what is more valuable – Gold or Platinum, it’s worth looking into history. Platinum was long the metal of kings. In the 19th century, it was exclusively available in Russian coins; later, European monarchies discovered its timeless elegance for their jewelry collections. The simplicity of the metal enhances the brilliance of diamonds optimally.

With the patenting of the Ostwald process in 1902, the industrial era of Platinum in automotive technology began. In 1924, the Platinum price reached six times the Gold price. This phase ended due to world wars and crises until the market recovered from 2000 onward. The spectacular rise until 2008 was driven by the financial crisis (surge in demand) and industrial use.

The following years brought a sobering stagnation for Platinum investors: The weakening diesel market (catalyst demand) and the unbroken rise of the Gold price cast Platinum into the shadow.

Gold or Platinum? The Right Choice for Different Types of Investors

For active traders: The increased volatility of Platinum price compared to Gold or silver offers interesting trading opportunities. CFDs with leverage, futures, or trend-following strategies (with quick 10s and slow 30s moving averages) are particularly suitable. The classic setup: buy signal when the fast moving average breaks above the slow one, sell when the opposite occurs.

Active risk management is crucial – risking a maximum of 1-2% of total capital per trade and using stop-loss orders. A practical example: With €10,000 capital and 1% risk per trade, the maximum risk is €100. With a leverage of 5x and a stop-loss at 2% below entry price, the position should not exceed €1,000.

For conservative investors: Platinum can serve as an addition to an existing portfolio, as its price dynamics sometimes move counter to stocks. This makes it a suitable hedge under certain circumstances for a US equity portfolio. Preferred instruments include platinum ETCs, ETFs, physical platinum, or platinum stocks. Regular rebalancing and combining with other precious metals reduce volatility risk.

Buy options at a glance:

• Physical acquisition (coins, bars) via banks or online platforms – but with storage and transaction costs
• Platinum ETFs/ETCs – easy to integrate, suitable even for beginners
• Shares of platinum mining companies – indirect participation
• CFDs and futures – for experienced speculators with high return and risk potential

Forecast for Platinum 2025: Stability with Upside Potential

Based on the combination of structural production shortages and stable demand, a neutral to slightly positive platinum forecast for 2025 emerges. As long as production capacities remain constrained – which cannot be resolved in the short term – Platinum is likely to stay stable or continue to rise.

A critical point: After the significant price jump since the beginning of the year, the risk of consolidation has increased until the end of the year. Extensive profit-taking could slow the price rally. Key factors for further development will be: the dollar trend, demand stability (especially under the influence of US tariffs), and possible recoveries in supply volumes.

Special note for investors: Lease rates should be monitored – they serve as an indicator of market conditions and future price trends.

Conclusion: What is More Valuable – Gold or Platinum?

The question “What is more valuable – Gold or Platinum?" cannot be answered in a blanket manner. Gold dominates as a global investment asset with stable demand and inflation protection. Platinum, on the other hand, offers opportunities for active traders and can serve as a portfolio hedge – but with significantly higher volatility.

2025 could be a turning point: Platinum shows real fundamental strength through structural deficits and surprisingly stable demand. However, each investor must decide for themselves whether and in what form they want to benefit from this dynamic. For active traders, Platinum offers trading setups; for conservative investors, a tactical addition – provided their individual risk tolerance permits.