Platinum is gaining attention in 2025 as a smart way to protect your money from inflation. Unlike gold and silver, which have long been the go-to metals for guarding wealth, platinum is now standing out because of several unique factors.
First, platinum’s price has surged significantly this year—up about 40% or more—outpacing gold and silver. This rise isn’t just luck; it’s driven by strong industrial demand combined with limited supply. Platinum is used heavily in industries like automotive manufacturing (especially for catalytic converters) and clean energy technologies such as fuel cells. These uses are growing as the world shifts toward greener energy solutions, pushing up demand for platinum.
At the same time, there aren’t enough new sources of platinum coming onto the market to meet this demand. Mining production has been tight for years, causing a supply deficit that keeps prices elevated. This scarcity makes platinum attractive not only as an industrial metal but also as an investment asset.
Another reason investors are turning to platinum is what some call “gold fatigue.” Gold prices have been very high lately—near record levels—which makes it less appealing because there might be limited room left to grow in price. Platinum trades at a significant discount compared to its past peaks and even relative to gold today, offering potentially better value.
If you want to use platinum as an inflation hedge in 2025, one practical way is through exchange-traded funds (ETFs) that hold physical platinum. For example, funds like the Aberdeen Standard Physical Platinum Shares ETF allow you to invest without needing to buy or store physical metal yourself while still benefiting from price gains tied closely to actual platinum market movements.
Keep in mind though that while long-term prospects look good due to ongoing industrial needs and supply constraints, short-term price swings can happen because of market volatility or changes in investor sentiment.
In summary: Platinum combines rising industrial use with limited supply and relatively lower current pricing compared with gold—making it a compelling choice if you’re looking beyond traditional precious metals for protection against inflation pressures this year.