Platinum vs. Gold 2025: The 20-Year Price Trend Reveals Surprising Opportunities

The precious metals markets are currently experiencing a renaissance: gold prices are climbing above the $3,300 mark, silver surpasses $38 – but while all gold investors celebrate, something fascinating is happening behind the scenes with Platinum.

In July 2025, platinum is trading at around $1,450 per ounce. This represents an increase of over 50% since January 2025 (then $900). But what is truly remarkable is: when analyzing the platinum price development over the last 20 years, a completely different picture emerges compared to gold.

Why Platinum long overshadowed gold – and then disappeared

Historically, platinum was the most valuable precious metal of all. In 2014, platinum was still trading above $1,500 – significantly higher than gold at that time. The key point: in 1924, platinum reached six times the gold price. With industrialization and later the automotive industry, platinum became a must-have for catalysts, medical technology, and chemicals.

But then the break came. While gold continuously hit new all-time highs from 2019 (2025 over $3,500), platinum steadily lost ground. The platinum-gold ratio, the relationship between the two metals, has been negative since 2011 – the longest negative phase in the combined price history of both precious metals.

The reason? The diesel crisis. Platinum catalysts for diesel engines were the main demand source for years. When the automotive industry faltered, platinum demand collapsed. In early 2020, platinum even fell below $600.

The comeback in 2025: Perfect storm or sustainable trend?

Since the beginning of 2025, the dynamics have fundamentally changed. A complex interplay of several factors is driving platinum higher:

Supply side: South Africa is struggling with production issues. The structural undersupply is real – supply remains permanently below demand. Recycling offers only limited relief (max 12% growth expected).

Demand side: China and the jewelry sector show surprising stability. The automotive industry is recovering moderately (+2% expected). Even industrial demand (-9% planned) could surprise positively.

Currency and geopolitics: A weak US dollar and geopolitical tensions are making platinum attractive again as an inflation hedge. The lease rates (indicators of physical scarcity) are extremely high.

Investment momentum: Large ETF inflows indicate that institutional investors are rediscovering platinum – after years of neglect.

The World Platinum Investment Council forecasts a deficit of 539,000 ounces in 2025, with total demand of 7,863,000 ounces and supply of only 7,324,000 ounces. This is not statistical noise – it’s a structural undersupply.

How platinum truly belongs in your portfolio

For active traders: Platinum’s volatility is its hallmark. While gold stabilizes, platinum offers swing opportunities. CFDs with leverage (5:1 is typical), enabling profit from price fluctuations with minimal capital. A proven method is trend-following with moving averages (10 and 30 MA).

Concrete implementation:

• Total capital: €10,000
• Maximum risk per trade: 1% = €100
• Set stop-loss at 2% below entry price
• Leveraged position: up to €1,000 (€100 risk ÷ 0.1 leverage multiplier)
• This limits your total loss to €100 even with a 10% price decline instead of €1,000

For conservative investors: Platinum as a hedging component offers genuine diversification. While stock portfolios and bonds are correlated, platinum has a partially inverse dynamic – especially during economic shocks. ETCs/ETFs are the simplest options.

The uncomfortable truth about the forecast

The price increase since January 2025 was real but not entirely sustainable. Besides genuine physical deficits, there were also speculative bubbles. Profit-taking could lead to a consolidation by the end of the year.

Key factors for the second half of 2025:

• US dollar development (weak = bullish for platinum)
• US tariffs and their impact on demand in China
• Lease rate trend (high rates = scarcity signal)

Long-term, the situation is clear: A structural deficit until at least 2029 means supply issues cannot be resolved quickly. This is bullish material for patient investors.

Conclusion: Platinum in the shadow of gold is a quiet opportunity

The 20-year price development of platinum tells two stories: one of decline from 2011 to 2024, and one of a comeback since 2025.

Those who see gold as a defensive asset could use platinum as an aggressive addition – with volatility as a feature, not a bug. Historical data shows: whenever structural shortages occur, platinum follows gold with a significant delay. This time, it could be different.