Platinum is catching a lot of attention in 2025 as an investment, and many are asking if it’s better than gold right now. The answer isn’t straightforward because both metals have their own strengths, but platinum is showing some unique advantages this year.
First off, platinum has been on a strong upward trend in 2025. It’s risen about 40% since the start of the year, which outpaces gold’s roughly 30% gain during the same period. This recent surge has pushed platinum prices to a four-year high, around $1,250 per ounce. Historically, platinum has had big price spikes followed by sharp declines—like in 1980 and again in 2008—but right now it looks like it might be entering another growth phase rather than just a short spike.
One key reason for platinum’s rise is its supply shortage. The World Platinum Investment Council predicts that mined output will drop by about 6% this year while demand remains strong. This ongoing deficit means there simply isn’t enough new platinum coming onto the market to meet needs—a factor that tends to push prices higher.
Demand for platinum also comes from industrial uses more so than gold. It plays an important role in clean energy technologies like hydrogen fuel cells and stricter vehicle emissions controls worldwide are increasing its use in catalytic converters. These green tech applications give platinum long-term growth potential beyond just being a precious metal for investors.
Gold remains popular mainly as a safe haven asset during times of economic uncertainty or inflation fears because it holds value well and is highly liquid with deep markets worldwide. Platinum doesn’t have quite the same reputation yet but offers diversification benefits since its price movements don’t always mirror gold’s exactly.
Investing options differ too: you can buy physical coins or bars of either metal or invest through ETFs (exchange-traded funds). For example, the abrdn Physical Platinum Shares ETF (PPLT) has outperformed similar funds focused on gold or silver so far this year due to these favorable conditions around supply and demand.
However, there are some downsides with platinum investing:
– It tends to be more volatile than gold because fewer people trade it regularly.
– Dealers often charge higher premiums over spot price compared to gold.
– Its market liquidity isn’t as deep as gold’s; selling large amounts quickly can sometimes be harder without affecting price.
Despite these challenges, many analysts see upside potential for platinum given how undervalued it appears relative to current record-high gold prices above $3,500 per ounce earlier this year. If historical ratios between these metals return toward normal levels again—as they often do—platinum could catch up significantly.
So whether you choose platinum over gold depends on your investment goals:
– If you want something tied closely to industrial growth and green technology trends with possible bigger gains but more risk and volatility,
– Or if you prefer traditional safe-haven stability with broad acceptance globally,
then your choice might differ accordingly.
In any case, adding some exposure to both metals could provide balance—platinum offering exciting growth prospects fueled by supply deficits and clean energy demand; while gold continues serving as reliable protection against economic shocks and inflation pressures seen throughout 2025.
This dynamic makes watching how each metal performs interesting throughout the rest of the year—and beyond—as global markets evolve under shifting economic conditions and technological advances reshape industries reliant on precious metals alike.