Platinum is making headlines in 2025 as a standout performer, outpacing gold and silver with a dramatic price surge. For investors looking to grow their portfolios, platinum offers a unique mix of industrial demand and investment appeal. Here’s how you can use platinum to potentially boost your portfolio this year.
First, understand why platinum is hot right now. The metal has jumped about 40% since the start of the year, reaching prices not seen since early 2021. This rally comes from a perfect storm: supply shortages—especially from South Africa, which produces most of the world’s platinum—and strong industrial demand for things like catalytic converters in cars and new uses in hydrogen technology.
To add platinum to your portfolio, you have several options. One easy way is through exchange-traded funds (ETFs) that track the price of platinum. These ETFs let you invest without needing to buy physical metal or worry about storage. The abrdn Physical Platinum Shares ETF (PPLT), for example, has mirrored the metal’s gains this year.
Another approach is buying physical coins or bars if you prefer holding tangible assets. U.S.-minted platinum coins are available and can be bought through reputable dealers or online platforms.
If you want to spread out risk and avoid buying at market peaks, consider dollar-cost averaging—buying small amounts regularly instead of all at once. This strategy helps smooth out price swings over time.
Platinum also brings diversification benefits because it doesn’t always move in sync with stocks or other precious metals like gold and silver. When markets get rocky or inflation picks up, having some exposure to different asset classes can help protect your wealth.
Keep an eye on trends that could keep driving prices higher: ongoing supply issues in South Africa due to aging mines and energy problems; rising industrial uses beyond just car parts; and growing investor interest as more people look for alternatives outside traditional markets.
Remember that while past performance looks strong right now, history shows that after big spikes there can be sharp pullbacks too—so it pays not to put all your eggs into one basket even when things seem unstoppable! Stay informed about global economic conditions affecting both supply chains for industry needs as well as overall investment sentiment toward precious metals generally speaking throughout each quarter ahead during what remains quite volatile times worldwide currently unfolding across many sectors simultaneously these days indeed!