The Forgotten Precious Metal Returns
Gold and silver dominate headlines, but platinum has quietly become the white-metal story of 2025. Once trading at a premium to gold, platinum spent years undervalued—until tightening supply and resurgent demand flipped the narrative.
Understanding the Deficit
The World Platinum Investment Council projects a supply deficit exceeding 600,000 ounces annually through at least 2028.
This isn’t a temporary imbalance—it’s structural. Mine disruptions in South Africa (which accounts for 70 % of global production) and reduced Russian exports have choked supply. Aging infrastructure, power shortages, and environmental restrictions make rapid recovery unlikely.
Meanwhile, recycling—the secondary supply that often fills gaps—remains subdued as older catalytic converters leave circulation more slowly than expected.
Demand Is Broadening
Historically, platinum’s main use was in automotive catalytic converters for diesel engines. As global emissions standards evolved, that demand softened—but new sources are emerging.
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Hydrogen technology: Platinum is essential in fuel-cell catalysts, a key component of green-energy transition infrastructure.
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Jewelery demand: Rising affluence in Asia, particularly China and India, is boosting platinum jewellery consumption.
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Investment demand: Institutional and private investors are accumulating platinum coins and bars as they recognize its under-valuation versus gold and palladium.
Why It Matters Now
With global production flat and new industrial applications rising, the supply deficit is expected to widen, not shrink.
Analysts forecast prices could revisit parity with gold within several years if investment flows continue and green-energy initiatives accelerate.
Portfolio Implications
For investors already holding gold and silver, platinum adds a third dimension of diversification. It behaves partly like a precious metal (store of value) and partly like an industrial metal (growth exposure).
That hybrid nature provides unique performance dynamics; it can outperform when economic growth and industrial demand strengthen, yet still benefit from safe-haven inflows when inflation rises.
Risks and Realism
Platinum’s smaller market size means higher volatility. Liquidity is thinner than gold’s, and industrial cycles can cause short-term price swings. Yet those same traits create opportunity: when supply tightens, price reactions can be dramatic.
The key is education and proportion—most experts suggest limiting platinum to 5-10 % of a metals portfolio, complementing core gold holdings.
The Broader Takeaway
For years, platinum traded at half the price of gold. In 2025, that discount is narrowing as fundamentals reassert themselves.
Investors who look beyond the mainstream narrative can benefit from positioning early in a structurally tight market. As deficits persist and demand broadens, platinum may prove to be the most underestimated metal of the decade.
