Gold Price 2025: Why the precious metal suddenly becomes more interesting than many think

The precious metals markets are booming: With gold prices above 3,300 USD per ounce and silver at nearly 38 USD, the traditional investor is experiencing a revival. But while everyone is talking about gold, something exciting is happening with platinum – since the beginning of 2025, the price has risen by over 50%. From January with just under 900 USD to 1,450 USD in July, that’s no small feat. It’s high time to take a closer look at this precious metal.

The Long Low: How Platinum Lost to Gold

Platinum wasn’t always the underdog. In 2014, the precious metal still cost over 1,500 USD – significantly more than gold at the time. Since then? An rollercoaster ride. While gold steadily climbed and marked a new all-time high of over 3,500 USD in April 2025, platinum remained stuck between 900 and 1,100 USD for a long time.

The main culprit was the struggling automotive industry. Unlike gold, platinum is not just an investment asset – it is a consumable. Most of it is used in diesel catalysts, whose demand collapsed in recent years. This also explains why the platinum-gold ratio has been in the cellar since 2011 – the longest negative phase in the history of both metals.

Especially curious: Platinum is much rarer than gold, yet cheaper. Statistically, this is absurd, but the market follows demand, not rarity.

2025: The Perfect Storm for Platinum

What has changed? A whole bundle of factors came together:

• Supply crisis, especially in South Africa
• Structural deficit – less supply than demand
• Extreme physical scarcity – evident in high lease rates
• Geopolitical tensions stirring the market
• Weak US dollar, making commodities cheaper
• Surprisingly stable demand especially in China and jewelry
• Massive ETF inflows in the investment sector

The result: a perfect storm. Low supply meets stable demand, the dollar weakens, and suddenly investors take notice – prices shoot up.

Why Is Platinum Actually Valuable?

Platinum is more than just a speculative object. The metal has real industrial significance:

• Automotive industry (41% of demand in 2025): Catalysts, but also new technologies
• Medical: Implants and medical instruments
• Chemical industry: Fertilizers, nitric acid production
• Future technologies: Fuel cells and green hydrogen

This makes platinum less susceptible to pure financial speculation than it appears. When industry is booming, demand rises. And long-term investors are betting on exactly that.

The Demand Side 2025: Where Is It Heading?

The World Platinum Investment Council expects for 2025:

• Total demand: 7,863 koz
• Total supply: 7,324 koz
• Deficit: 539 koz

In plain English: the market remains tight. The differences are particularly interesting:

Automotive industry (+2%): Slow but steady growth – new catalyst technologies are showing results.

Jewelry (+2%): It’s been a long time since platinum was this interesting as a design metal.

Investment (+7%): The sector that is currently exploding – major asset managers are waking up from their slumber.

Industry in general (–9%): Headwinds threaten here. Depends on how US-China trade relations develop.

Overall, a neutral to slightly positive scenario – unless industry surprises on the upside.

Platinum vs. Gold – Which Is the Better Choice Now?

Gold is inflation-protected, stable, recognized worldwide. The safe haven.

Platinum is more volatile, rare, and has industrial relevance. It can move counter to stocks – a real hedge for portfolios.

The honest answer: Both have their place. Gold for conservative investors who want stability. Platinum for those chasing higher returns or diversifying their portfolio.

Currently, platinum is worth more than six months ago – not because its fundamental value has changed drastically, but because market participants have finally woken up.

How to Invest Specifically?

For traditional investors:

• Physical platinum (bars, coins) – but storage costs money
• Platinum ETFs/ETCs – simple, transparent, no storage worries
• Platinum stocks – indirectly invest in mining companies

For active traders: CFD trading with leverage makes sense with platinum, as volatility is higher than with gold. A simple system: use two moving averages (MA10 and MA30), buy when MA10 crosses above MA30, sell on the next downward cross. Manage with leverage x5 and a maximum risk of 1-2% per trade:

Example with €10,000 capital:

• Max risk per trade: €100 (1%)
• Stop-loss 2% below entry price
• Leveraged position: max €1,000
• So you never lose more than a small part per failed trade

For conservative diversifiers: Platinum can make up 5-15% of a diversified portfolio – enough for diversification, not so much that volatility shakes the entire portfolio. Combined with other precious metals and regular rebalancing, this is a solid strategy.

The Risk: Consolidation Could Loom Until End of 2025

The July spike was massive, but here’s the sobering part: not everything was fundamentals. Speculators also contributed. If profit-taking begins now, a consolidation could follow.

Key factors for H2 2025:

• How will the US dollar develop?
• Will demand stay stable or be affected by US tariffs?
• Can supply recover?

Keep an eye on lease rates – they are the market’s compass.

The Conclusion: Platinum Deserves a Second Look

Platinum was underestimated for years. 2025 could be the turning year. It’s not suitable for everyone, but the opportunities currently outweigh the risks – if you know what you’re doing. Interesting for traders because of volatility, valuable for long-term investors for diversification, and exciting for speculators because of the potential further upside.

The central question remains: Do you want to profit from the movement or prefer to play it safe? Your answer determines how much platinum belongs in your portfolio.