Is Platinum Undervalued Compared to Gold?
Platinum and gold have both seen big price jumps in 2025, but platinum might still be a better deal right now. Gold started the year at record highs and kept climbing, while platinum lagged behind at first before catching up fast. For example, average platinum prices went from $973 in early 2025 to over $1,597 by December, according to data from https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts[1]. Gold averaged around $2,644 over a similar period, making platinum look cheaper ounce for ounce.
What makes platinum stand out is its recent surge. In mid-December 2025, platinum hit $1,935 per ounce, the highest since 2008, thanks to heavy trading on China’s new Guangzhou Futures Exchange, or GFEX. Details from https://www.bullionvault.com/gold-news/gold-price-news/platinum-gfex-palladium-121720251[2] show platinum rose 19.7% in just 15 days after GFEX launched contracts in late November. Palladium, another metal, also jumped, but platinum’s move was even stronger, hitting multi-year highs despite high US interest rates.
Historically, platinum traded at a premium to gold because it is rarer and used more in industry, like car catalysts. But for years, platinum sold for less than gold, flipping the usual pattern. Now, with prices nearing $2,000 before a slight pullback, as noted in https://www.gurufocus.com/news/4075439/gold-and-platinum-prices-surge-amid-geopolitical-tensions-and-inflation-data-anticipation[4], some see it closing the gap. AI forecasts from sources like Gemini and Perplexity predict platinum at $980 to $1,040 by year-end, still below gold’s $2,700 range[1].
Gold shines as a safe haven amid tensions and inflation fears, with reports of it reaching historic peaks in https://www.usgoldbureau.com/news/post/gold-on-the-rise-why-now-is-the-best-time-to-buy-physical-gold[5]. Yet platinum’s industrial demand from autos and jewelry, plus supply issues from sanctions on Russia, could push it higher. Even with real US rates at 18-year highs, precious metals like these keep gaining, with platinum posting its best run since 1990[2].
Traders watch China’s buying and US tariff talks closely. Platinum lease rates stay high, signaling tight supply. If demand holds, platinum could catch gold and maybe pass it, suggesting it is undervalued today.
Sources:
https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts
https://www.bullionvault.com/gold-news/gold-price-news/platinum-gfex-palladium-121720251
https://www.bullionvault.com/gold-news/gold-price-news/gold-silver-real-rates-121620251
https://www.gurufocus.com/news/4075439/gold-and-platinum-prices-surge-amid-geopolitical-tensions-and-inflation-data-anticipation
https://www.usgoldbureau.com/news/post/gold-on-the-rise-why-now-is-the-best-time-to-buy-physical-gold