A Forgotten Metal With New Life

When investors think of precious metals, gold and silver dominate the conversation. Yet platinum, once more expensive than gold, has quietly become one of the most compelling opportunities in 2025.

Industrial and Investment Demand

  • Automakers: Leading the charge as they substitute platinum for palladium in catalytic converters — a structural shift boosting platinum demand.

  • Investors: Platinum remains under-owned relative to gold and silver, creating room for inflows.

Deep Supply Deficits

The World Platinum Investment Council (WPIC) projects a 2025 deficit of ~0.97 million ounces, with supply falling to a five-year low. Major producers in South Africa have faced power supply issues and limited investment in new mines, tightening output further.

Demand Trends Supporting the Case

  • Auto Catalysts: Platinum’s lower cost makes it the logical substitute for palladium. This switch is accelerating.

  • Hydrogen Economy: Platinum is critical in hydrogen fuel cells, a growth sector aligned with clean-energy policy.

  • Jewelry Demand: While smaller than auto/industry, jewelry demand provides a steady base.

Market Mechanics

  • Thin Market: Platinum’s market size is much smaller than gold or silver. Even modest investment flows can drive outsized price moves.

  • Persistent Deficits: With demand rising and supply contracting, price pressure builds with each passing quarter.

  • Relative Value: Platinum still trades at a significant discount to both gold and palladium — unusual given its rarity.

Historical Context

Platinum has traded at premiums to gold in the past. In the early 2000s, platinum commanded more than double gold’s price. Today, the discount is historically wide, suggesting a strong value case for mean reversion.

Investor Takeaway

Platinum in 2025 is a scarcity story combined with rising industrial demand. With structural deficits and a thin market, the conditions are set for potential sharp revaluation.

Platinum may be the most overlooked buy in the precious metals complex. For investors seeking diversification and upside, the time to accumulate is now.