Gold Price 2025: Why This Precious Metal Is Catching Investors' Attention Now

The Forgotten Champion Among Precious Metals

While gold price and silver price regularly make headlines, platinum remains a niche. Yet, this precious metal is no less fascinating: With an all-time high ratio of over $1,450 per ounce in July 2025, the platinum price has already increased by over 50% this year—a dynamic that surprised many market observers. But how did this rapid development come about, and is it worth entering?

From Obscurity to Renaissance: The Current Market Situation

For years, the platinum price lagged behind gold. While gold reached new highs beyond $3,500 in 2025, platinum hovered around the $900–$1,000 mark for a long time. A tragic fate for a metal that was historically more valuable than gold—back in 2014, platinum was still well above $1,500.

The causes of the current rally are diverse: a supply shortage in South Africa, the structural deficit between production and demand, geopolitical tensions, and a weak US dollar create a perfect storm. Added to this is massive physical scarcity—evident in exceptionally high lease rates—as well as surprisingly robust demand in China and the jewelry sector. The interplay of these factors has led to an explosive price jump since the beginning of the year.

What Makes Platinum So Special?

Unlike gold, platinum is not just an investment product but a true industrial metal. Its rarity and technical properties make it indispensable:

• Automotive industry: Diesel catalysts were long the main market, but are now being reweighted due to new mobility technologies
• Green technologies: Fuel cell construction and green hydrogen increasingly require platinum
• Medical and chemical sectors: Implants, fertilizers, and specialized chemicals are buyers
• Jewelry: Timeless elegance and rarity make platinum popular among designers

This versatility fundamentally distinguishes platinum from pure store-of-value assets. Industrial demand amplifies price fluctuations—both upward and downward.

Historical Perspective: From Russia to the Present

Platinum’s history as an investment metal is surprisingly young. While gold and silver have been minted since antiquity, platinum’s career only began in the 19th century—and it was marked by scandal: Russia minted the first state-issued platinum coins in 1825, but then banned exports and production from 1845. The resulting oversupply led to a collapse in prices.

The true renaissance came in the 20th century. With the patenting of the Ostwald process in 1902 ( for large-scale nitric acid production ), platinum became a key substance for the automotive industry. In 1924, platinum traded at six times the gold price. Only after 2000 did another explosion occur: platinum reached its previous all-time high of $2,273 in March 2008—driven by the financial crisis, uncertainty, and economic booms with supply shortages.

The Platinum Forecast 2025: What Awaits Us?

According to the World Platinum Investment Council, 2025 looks interesting: total demand is expected to be 7,863 kilounzen against an offer of only 7,324 kilounzen—a deficit of 539 kilounzen. Supply is expected to grow by only 1%, while the recycling segment could surprisingly increase by 12%.

Demand structure 2025:

• Automotive industry (41%): Slight increase of 2%
• Jewelry sector (25%): Demand rises by 2%
• Industry (28%): Expected -9% decline
• Investment sector (6%): Strong increase of 7%

Total demand declines modestly by 1%, but the uneven distribution is crucial. The expected industrial decline depends on US-China trade relations. If industrial activity falls more than forecasted, significant price increases could follow. Conversely, escalating trade conflicts could darken the outlook.

Update July 2025: After massive price gains, caution is advised. Besides genuine physical deficit and dollar weakness, speculative heat also drove the price. Profit-taking could trigger a consolidation. The key factors will be the dollar exchange rate, demand stability, and potential supply recoveries.

Investment Opportunities: From Classic to Speculative

Physical platinum:
Coins, bars, and jewelry can be purchased from precious metal dealers, banks, and online platforms. Disadvantage: secure storage incurs high transaction and custody costs.

ETCs and ETFs:
For those who prefer to avoid physical holdings, accessible platinum ETFs or exchange-traded commodities are an option. They track the price development and can be seamlessly integrated into a securities portfolio—ideal also for beginners.

Mining stocks:
Shares in platinum mining companies offer indirect exposure with additional company-specific risks and opportunities.

CFD trading:
Contracts for difference enable speculative positions with low capital outlay—thanks to leverage. With leverage x5, even small investments can control large positions. Platinum’s volatility makes CFDs attractive for active traders.

Futures and options:
Complex instruments for experienced investors with high profit and loss potential.

Trading Strategies for Active Traders

Platinum’s increased volatility offers attractive trading setups. A proven method is the trend-following strategy using moving averages:

• Combine a fast (10-day) and a slow (30-day) moving average
• Buy signal: Fast MA crosses above the slow MA (Leverage x5)
• Sell signal: Fast MA falls below the slow MA—close position

Risk management is essential:

Risk no more than 1-2% of total capital per trade. Example with €10,000:

• Max risk per trade (1%): €100
• Leverage: x5
• Stop-loss: 2% below entry price
• Max position: €1,000 (€100 ÷ 0.10)

This discipline prevents ruinous drawdowns.

Platinum as a Portfolio Diversifier

More conservative investors should consider platinum as a hedge. The metal often moves counter to stock portfolios and has its own supply/demand dynamics. For US equity portfolios, it can provide long-term stabilization.

Suitable instruments: platinum ETFs, physical material, or mining stocks. The portfolio allocation should be determined individually—regular rebalancing reduces increased volatility.

Conclusion: Timing for Platinum Engagement?

The platinum forecast 2025 presents a nuanced picture: value stability due to structural deficits but also consolidation risks after the rapid rally. For active traders, volatility offers attractive opportunities—strict risk management is essential. For long-term investors, platinum can serve as a defensive addition.

The key lies in individual circumstances: each investor must decide for themselves whether and in what form platinum belongs in their portfolio.