Inflation can quietly eat away at the value of your money, making everyday things more expensive over time. One way to protect yourself from this is by investing in assets that tend to hold or increase their value when prices rise. Platinum, currently priced around $1,289 per ounce in 2025, is gaining attention as a smart choice for hedging against inflation.
Platinum isn’t just a shiny metal; it has real industrial uses that keep demand strong. It’s heavily used in car manufacturing—especially in catalytic converters for diesel engines—and increasingly in clean energy technologies like hydrogen fuel cells. This growing industrial demand helps support platinum’s price even when other metals might falter.
What makes platinum particularly interesting right now is its supply situation. Mining output has been falling short of demand for several years, creating a supply deficit that experts expect to continue through 2025 and beyond. When there’s less platinum available but steady or rising demand, prices tend to go up or at least stay firm.
Compared to gold and silver, which are often seen as traditional safe havens during uncertain times, platinum offers something different: it combines investment appeal with real-world industrial use. While gold and silver have had solid gains recently due to geopolitical tensions and economic uncertainty, platinum has outperformed both so far this year thanks to its unique mix of factors.
If you want exposure without buying physical metal directly—which can involve storage and security concerns—you might consider investing through exchange-traded funds (ETFs) focused on platinum like PPLT. These ETFs track the price of physical platinum closely and allow you to buy or sell shares easily on the stock market.
However, be aware that while the long-term outlook for platinum looks promising due to these supply-demand dynamics and clean energy trends, short-term price swings are common because markets react quickly to news about mining strikes or geopolitical events affecting major producers like South Africa or Russia.
In practical terms:
– Buying some amount of platinum now could help preserve your purchasing power if inflation continues rising.
– Platinum’s current price relative to gold suggests it may be undervalued historically—meaning there could be room for gains.
– Keep an eye on global events impacting mining operations since sudden disruptions can push prices higher.
– Consider using ETFs if you prefer liquidity over holding physical bars or coins.
Platinum at $1,289 offers an intriguing opportunity as part of an inflation hedge strategy—not just because it’s precious but because its tight supply combined with growing industrial use sets it apart from other metals traditionally favored during inflationary periods.