Platinum’s market is much smaller than gold’s in both value and scale, but recent years have shown growing divergence: platinum is trading higher and sometimes outpacing gold on percentage gains because of tightening supply and rising industrial and jewelry demand, while gold remains the dominant, much larger safe‑haven market and store of value. [4][1]
Why the markets differ
– Primary roles: Gold is chiefly a monetary and investment metal held by central banks, ETFs, and private investors, giving it a very large market footprint and price support tied to macroeconomic risk and inflation expectations [4]. Platinum is both a precious metal and an industrial metal used in auto catalysts, hydrogen and fuel cells, and certain chemical and medical applications, which links its price more directly to manufacturing and clean‑energy trends [4][1].
– Supply structure: Global gold supply is relatively broad, with stable mine output, significant recycling and large above‑ground stocks and official reserves that mute short‑term deficits. Platinum supply is concentrated (notably South Africa) and more sensitive to mine disruptions and inventory shifts, so even modest changes in production or scrap flows can quickly create deficits or surpluses [1][5].
– Demand composition: A larger share of gold demand comes from investment (bars, coins, ETFs) and jewelry, plus central bank purchases. Platinum’s demand mix has a heavier industrial component (auto catalysts, emerging hydrogen uses) and growing jewelry and investment pockets (notably in China), which can change rapidly with technology and fashion [1][5].
Size comparisons and recent figures
– Market value: Industry reports estimate the total precious metals market at the hundreds of billions of dollars level, with gold accounting for the largest share (about 42 percent of precious‑metals revenue in one 2024/2025 assessment), making gold the clear market leader by revenue share [4].
– Physical market flows: In 2025, research and market commentary pointed to a meaningful platinum supply deficit measured in hundreds of thousands of ounces, with the World Platinum Investment Council and other analysts citing sharply tighter balances versus recent years; this structural deficit is a key reason platinum rallied strongly during 2025 [1][5][6].
– Price behavior: In 2025 platinum experienced very large percentage gains from depressed prior levels—reports cited rallies of 40 to 115 percent year‑on‑year depending on the date and source—while gold reached record highs in many currencies and remained higher in absolute price per ounce, but with smaller percentage moves relative to platinum’s rebound in that period [2][3][7][6].
Drivers that can keep the gap changing
– Industrial demand growth: Expansion in catalytic converters, hydrogen fuel cells, and certain renewable energy applications can increase platinum’s industrial footprint and narrow long‑term structural underperformance versus gold [2][4].
– Investor flows and relative valuation: When gold becomes very expensive, some capital can rotate into undervalued or industrial precious metals; 2025 saw commentary about rotation into platinum because its platinum‑to‑gold ratio hit multi‑decade lows, attracting speculative and strategic buyers [2][5].
– Supply shocks: Because mining and refining for platinum are geographically concentrated, strikes, power shortages, or lower mine output have outsized effects on platinum’s available supply and prices compared with gold’s more diversified supply base [1][9].
– Central bank activity: Central banks buy and hold gold but do not buy platinum, so sovereign reserve behavior tends to broaden gold’s market and reinforce its role as money rather than an industrial commodity [4].
Implications for investors and users
– For investors seeking diversification from gold, platinum offers a different risk profile: higher sensitivity to industrial cycles and supply constraints, and potentially larger percentage upside from deficits, but also greater volatility and less liquidity versus gold’s deep global market [2][5].
– For industrial users and automakers, tighter platinum markets raise input costs and can accelerate substitution to palladium or adjustments in catalyst design; conversely, long‑term clean energy use (fuel cells, hydrogen) could lock in stronger industrial demand for platinum [1][4].
– For jewelry markets, platinum’s relative price versus gold affects consumer substitution: when platinum is relatively cheap or approaching price parity with gold, white‑metal jewelry demand can rise, as seen in some 2025 regional reports [1].
How to read headlines and forecasts
– Price forecasts and percentage gains are often short to medium term and depend on assumptions about mine production, recycling, automotive demand, and investor flows; some analysts in 2025 projected continued upside for platinum into 2026 while others noted the rally could pause if investor interest cools or new supply arrives [2][5][3].
– Market estimates vary by source: industry bodies like the World Platinum Investment Council publish quarterly balance estimates and supply/demand breakdowns, while commercial research firms produce broader precious‑metals market valuations and growth forecasts that emphasize revenue share rather than ounces traded [1][4].
Sources
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.fxempire.com/forecasts/article/platinum-price-forecast-gold-rotation-fuels-platinum-breakout-toward-2300-by-2026-1567402
https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts
https://www.mordorintelligence.com/industry-reports/precious-metals-market
https://investinghaven.com/commodities-gold/is-platinum-stealing-the-spotlight-from-gold/
https://tradingeconomics.com/commodity/platinum
https://fortune.com/article/current-price-of-platinum-12-