Platinum is often seen as one of the more mysterious metals in the precious metals market. Unlike gold and silver, which are household names for investors and collectors, platinum tends to fly under the radar. Yet, its unique qualities and current market dynamics raise an interesting question: Is platinum the most undervalued asset among precious metals right now?
To start with, platinum is rarer than gold in terms of how much exists naturally in the Earth’s crust. Despite this scarcity, its price today is significantly lower than gold’s—about one-third of gold’s value per ounce as of mid-2025. Gold trades around $3,360 per ounce while platinum sits near $1,070. This gap has been persistent since around 2014 when platinum last traded above gold[5].
Why does this happen? One big reason lies in demand differences. Gold has long been prized not only for jewelry but also as a store of value and a hedge against economic uncertainty or inflation. Platinum’s demand is more tied to industrial uses—especially catalytic converters that reduce vehicle emissions—and emerging clean energy technologies like hydrogen fuel cells[3]. These industrial ties mean its price can be more volatile depending on economic cycles.
However, recent trends suggest something interesting: despite being cheaper than gold by a wide margin, platinum’s price has been rising steadily through 2025 and even outperformed both gold and silver so far this year[3]. The abrdn Physical Platinum Shares ETF (PPLT), which tracks physical platinum prices, gained over 40% in 2025 compared to just under 30% gains for comparable ETFs tracking gold (GLD) and silver (SLV). This shows growing investor interest possibly recognizing that platinum offers unique growth potential.
Another factor supporting a bullish view on platinum is supply constraints. Mining output for newly mined platinum is expected to fall by about 6% in 2025 due to various challenges faced by producers worldwide[4]. When supply tightens while demand remains steady or grows—especially from green energy sectors—the stage can be set for higher prices.
Still, professional analysts forecast only modest gains for platinum through the rest of 2025 compared to other metals like silver or even palladium[1]. This cautious outlook might reflect lingering uncertainties such as global economic conditions or shifts away from traditional automotive industries toward electric vehicles that use less or no catalytic converters.
So why might some consider it undervalued? Because despite these headwinds and lower current prices relative to historical norms where it often traded at a premium over gold during much of the last century[5], there are strong structural reasons why demand could rise sharply going forward:
– Its critical role in pollution control technology remains vital globally.
– Growing adoption of hydrogen fuel cells relies heavily on platinum catalysts.
– Supply disruptions could tighten availability further.
– Investors seeking alternatives may turn increasingly toward it given its relatively low price versus other precious metals.
In essence, while not without risks or short-term volatility potential,[3] many see an opportunity where market pricing hasn’t fully caught up with these fundamentals yet—a classic sign some might call undervaluation.
Platinum stands at an intriguing crossroads: rarer than many peers but priced well below them; essential industrially yet overlooked by mainstream investors; showing strong recent performance but still facing cautious forecasts. For those willing to look beyond traditional safe havens like gold and silver—and who believe clean energy trends will accelerate—it may well represent one of the most compelling opportunities hidden within precious metals today.