Is platinum more expensive than gold? An analysis of precious metal prices 2025

The traditional precious metals are currently experiencing a remarkable price development. Gold is trading above the $3,300 mark per ounce, and silver has surpassed the $38 threshold. But how does platinum compare to these two established precious metals? The answer is surprisingly different.

The Paradoxical Price Comparison: Why is platinum cheaper despite its rarity?

Those asking whether platinum is more expensive than gold will initially receive a surprising answer: No. Although platinum is significantly rarer than gold, it is currently trading well below the gold price. In July 2025, platinum is around $1,450 per ounce, while gold has already exceeded $3,500.

This discrepancy is not just a market anomaly – it has deep historical roots. Until 2014, platinum was actually the more valuable precious metal, trading above $1,500. Afterwards, a downward spiral began, leading to a low of under $600 in 2020. Gold, on the other hand, experienced a continuous upward trend and reached its all-time high of over $3,500 in April 2025.

The negative platinum-gold ratio has existed since 2011 – the longest period in the combined price history of both metals. However, since the beginning of 2025, a trend reversal is emerging.

What drives the price differences?

The reason for the different value developments is not solely supply and demand on the capital market. Unlike gold, platinum is a consumable good – its demand is heavily dependent on industrial production.

Gold is primarily held as an inflation hedge and investment capital. Its demand is fueled by uncertainty and the desire for safe havens.

Platinum, on the other hand, is extensively used in the automotive industry – especially in diesel catalysts. When diesel demand collapsed, platinum prices suffered. Additionally, platinum is used in:

• Medical implants
• Chemical industry
• Fuel cells and green hydrogen
• Jewelry manufacturing

The dramatic surge in 2025: From $900 to $1,450

Despite its historical weakness, platinum shows impressive strength in 2025. The price has risen from nearly $900 in January to $1,450 in July – an increase of over 50 percent in just six months.

Several factors are working together:

• Acute supply crisis in South Africa
• Structural deficit: demand exceeds supply
• Extreme physical scarcity (visible in high lease rates)
• Geopolitical tensions
• Surprisingly stable demand from China and the jewelry sector
• Weak US dollar
• Massive ETF inflows into investments

This perfect storm explains the dramatic price jumps since the beginning of the year.

Investment outlook: Opportunities and risks

For 2025, the World Platinum Investment Council forecasts total demand of 7,863 koz against an offer of only 7,324 koz – a deficit of 539 koz. Supply is expected to grow by only 1 percent, while the recycling segment could increase by up to 12 percent.

The demand distribution shows an interesting dynamic:

The total expected demand decreases by 1 percent, mainly due to a 9 percent decline in industrial demand. However, this point also offers upside potential: if Chinese and American industrial growth accelerates, the forecast could turn significantly more positive.

Is platinum more expensive than gold – and should you invest?

In short: Currently, platinum is cheaper than gold, but market dynamics are shifting. Whether platinum is a better investment depends on the investor type.

For active traders, platinum positions are suitable due to higher volatility. The strong price fluctuations offer numerous trading setups. Popular instruments include leveraged CFDs or futures. A proven strategy is trend-following with moving averages (10 and 30 MA).

Example of risk management in leveraged trading:

• Total capital: €10,000
• Maximum risk per trade (1%): €100
• Stop-loss: 2% below entry price
• Leverage: 5x
• Leveraged position: maximum €1,000

For conservative investors, platinum can serve as a portfolio diversification component. It sometimes moves inversely to stocks and offers diversification benefits. Suitable instruments include platinum ETFs, physical platinum, or platinum stocks. The allocation should be determined individually and regularly rebalanced.

Important: The increased volatility also raises portfolio risk. Combining with other precious metals is recommended.

Outlook: Consolidation or further rise?

After massive gains since the beginning of the year, the risk of consolidation has increased. While the price growth is supported by real physical deficits and a weak dollar, speculative inflows also play a role.

Key factors for further development will be:

• The US dollar trend
• The stability of demand (especially under trade and tariff measures)
• The supply volume and possible recoveries despite structural deficits
• Lease rates as an indicator of market tensions

Platinum investors should monitor these indicators closely.

Conclusion: Is platinum more expensive than gold?

The question of whether platinum is more expensive than gold can be answered with a clear “No” – at least for now. However, market dynamics suggest that this ratio could normalize over the longer term. Scarcity favors platinum, and industrial demand adds further upside potential.

Whether platinum is a worthwhile investment depends on individual goals, risk appetite, and time horizon. For active traders, volatility offers opportunities; for long-term investors, diversification could be valuable. One thing is certain: after years of neglect, platinum is regaining attention – both from markets and investors.