Is Platinum Worth Buying? A Guide for Investors

Platinum is a precious metal and is used as an investment asset worldwide, along with gold and silver. Moreover, compared to other precious metals, platinum is far rarer. According to experts, the reserves of this metal are 15-20 times less than gold and 100 times less than silver. The main percentage of production is concentrated in one country, South Africa.

However, gold has taken the lead in attracting investment, while platinum remains somewhere on the periphery. We think this is unfair. In this article, we will look at whether platinum is worth buying and how to make investing in platinum profitable.

What is Platinum and Why is it Valuable?

Platinum is a precious metal actively used in industry, jewelry manufacturing, and as an investment instrument. Platinum is the third most traded precious metal, behind only gold and silver.

Recently, the demand for platinum around the world has been increasing dramatically due to its use in important industries. For example, this metal is used in the manufacture of hard discs, electronics, and medical equipment. Applications for platinum have also been found in the automotive industry, agriculture, chemical and pharmaceutical industries, and, of course, jewelry. In other words, platinum is not only a beautiful and rare metal but also incredibly useful.

All of the above makes platinum a good asset to invest in and a metal worth buying. However, from a trader’s point of view, it is important to consider other factors:

1. Platinum is an indispensable metal in emerging high-tech sectors of the economy;
2. Platinum is difficult to mine, and the existing supply barely covers the growing demand;
3. Platinum is much rarer compared to gold—for every ounce of platinum mined, about 10 ounces of gold are extracted;
4. Platinum is recognized as the most valuable metal in the jewelry industry;
5. For the last five years, global sales of platinum have amounted to about $10B, three times less than silver. At the same time, the volume of investment purchases is ten times less than silver, which shows the unrealized investment potential of this metal.

Of course, when talking about platinum, we can mention several things that make it difficult to use as an investment, and we will discuss them further. However, in our opinion, the main problem with this metal is the lack of awareness among traders. Nevertheless, trading volumes and prices are growing every year, which means that the opportunity to diversify your portfolio with profitable investments has not been missed yet.

Platinum’s Historical Price Performance

Over the past five years, the spot price of platinum has risen significantly. In 2020, it was around $700 per ounce, and in 2025, it had already exceeded $1000 per ounce. Investor activity received a nice boost during the COVID-19 pandemic when platinum (as well as other precious metals) was used to protect against inflation.

Separately, it is worth considering the shares of mining companies. For example, Anglo American Platinum Limited, which is headquartered in Johannesburg. Has shown significant growth from about $6 to $25 per share, setting a price record in 2022. For the sake of objectivity, it should be noted that further, the company’s shares started to actively decline in price, and today, they are trading in the range of $5-6 per share. Several reasons for this decline can be cited:

1. General geopolitical tension caused by armed conflicts in Europe, Asia, and Africa raises concerns about the stability of demand, especially in high-tech industries in Europe, which may change the vector of development to the military-industrial sector.
2. A structural shift toward electric vehicles (EVs) in the U.S. and China has reduced demand for platinum in traditional automotive catalytic converters. This structural change may affect the platinum industry in general, as in 2024, Impala Platinum Holdings reported. However, platinum remains relevant in fuel cell vehicles (FCEVs) and hybrid technologies, although its role is evolving.

To get a clearer picture of platinum’s market trends, let’s look at the historical price chart. The graph below highlights major price movements:

Despite the above, the price of platinum as a metal has not experienced such fluctuations, which once again confirms its value as a tool to protect one’s assets from inflation, global instability, and other negative effects in our difficult times.

Factors That Influence Platinum Prices

The price of platinum is affected by many factors. Long-term forecasting and quick reaction to changes in the analysis of these factors will help investors to get the most out of trading precious metals. Below, we have highlighted the main aspects worthy of your attention.

Supply and Demand

Obviously, the main factor affecting the price of platinum is the balance of supply and demand. In the previous sections, we touched on this topic briefly. Now, let’s discuss it in more detail.

Despite the general economic downturn of recent years, the variety of applications for platinum has created a sustainable market. Estimates vary, but the most conventional estimate of total platinum demand is suggested by the World Platinum Investment Council (WPIC)—7.95 million ounces in 2024. In 2025, demand is forecast to fall by no more than 1%.

At the same time, the main demand goes to 4 sectors of the economy: automotive, industry, jewelry, and investment.

Automotive industry

In the automotive industry, two key trends emerge.

Firstly, platinum is actively replacing palladium in the catalytic converters of gas and diesel engine cars, which creates additional growth opportunities.

Second, recent consumer boycotts of auto giants such as Tesla have led to a significant contraction of the electric car market in Europe. There has also been a widespread correction in plans for a rapid green transition. Top companies in the energy industry, such as BP, are cutting back on investments in green energy and noting that the transition will take much longer. The potentially shrinking market share of electric cars provides optimism for platinum investors.

The aforementioned WPIC forecasts platinum demand in the automotive industry to grow by 2% to 3.25 million ounces in 2025, which confirms our assumptions.

Chemical and glass industry

There is more depressing news in the industry.

According to a forecast from WPIC, platinum demand in industrial sectors such as chemicals and glass could decline by 9% year over year. The main reason is the weak development of new glass production capacity and the general economic slowdown in China, which has slowed the start-up of chemical plants.

Jewelry

Instead of a declining industry, the driver of the platinum market may be the jewelry business.

It is forecast to grow at a CAGR of 2% in 2025. Countries such as the US and India, where platinum has become a more affordable option for jewelry than gold, stand out. The trend may continue in the next few years.

Investing sentiments

We have saved the most interesting part for last—investing in platinum.

As we have said before, the use of platinum as an investment or inflation protection instrument lags far behind the demand in the real economy. Compare for yourself, in 2024, projected sales are only 393,000 ounces of platinum. That’s a drop in the ocean compared to gold or silver.

WPIC, however, predicts a nice positive trend that could bring up to 7% growth in this area in 2025. All thanks to the launch of platinum ETFs and physical products in the US and China.

While demand dynamics play a crucial role in shaping platinum’s price, supply-side constraints are equally important for traders to consider.

The platinum market has been experiencing a supply deficit for three consecutive years, with a projected shortfall of 539,000 ounces in 2025, according to WPIC estimates. Although this gap is narrowing compared to 759,000 ounces in 2023, the improvement is primarily due to a 14% increase in recycled platinum production, which helps offset a 2% decline in mine output. Despite this, overall supply remains tight, with total availability expected to increase by just 1% to 7.32 million ounces in 2025.

The decline in mining output is largely attributed to disruptions in South Africa, which accounts for nearly 67% of global platinum production. Ongoing power shortages and transportation bottlenecks in the Bushveld Complex, the world’s largest PGM deposit, continue to hinder production. Other key platinum-producing nations—Russia, Zimbabwe, Canada, and the U.S.—offer limited contributions, making South Africa’s production challenges a major concern for the global supply chain. With geological platinum reserves significantly smaller than those of gold, and extraction costs remaining high, supply shortages could exert upward pressure on platinum prices over the long term.

What does it mean for traders?

A tightening supply combined with steady demand across key industries could present bullish opportunities. Although platinum has lagged behind gold and silver in terms of investment appeal, its rarity and industrial significance make it a compelling asset for portfolio diversification.

If mining constraints persist while demand remains stable or grows—especially with platinum’s increasing use in fuel cell technologies and industrial applications—prices may trend higher, reinforcing platinum’s role as a hedge against inflation and economic uncertainty.

Economic Growth

Like most commodities, platinum prices tend to rise in periods of economic expansion and decline during downturns. This is because industrial demand for platinum is closely tied to global economic activity. When economies grow, automotive production increases, factory output rises, and consumer spending on luxury goods (such as platinum jewelry) tends to climb. These factors create higher demand and support price appreciation.

Conversely, economic slowdowns, recessions, or financial crises often weaken platinum prices. For example, the slowdown in China’s industrial sector has negatively impacted platinum demand, particularly in glass and chemical production. Inflation and high interest rates can also play a role, as they reduce disposable income and corporate investment, limiting industrial and consumer demand for platinum-based products.

Geopolitical Events

Platinum’s heavy reliance on a few key mining regions makes it highly vulnerable to geopolitical instability. South Africa, which produces nearly 70% of the world’s platinum, has faced ongoing power shortages, labor strikes, and logistical disruptions, all of which have constrained supply. Political and regulatory changes in mining-heavy nations, such as Zimbabwe and Russia, can also affect production, creating potential supply shocks.

On the demand side, geopolitical events can influence trade policies, industrial output, and investment sentiment. For example, the war in Ukraine has reshaped global energy markets and raised concerns about supply chain security. If tensions escalate in major industrial hubs, platinum demand from sectors like automotive, defense, and electronics could be impacted.

Investor Sentiment

Unlike gold and silver, platinum has historically been more of an industrial metal than an investment asset, but this is beginning to change. Growing interest in platinum ETFs, physical platinum products, and futures trading is making the metal more accessible to retail and institutional investors. As a result, platinum’s price is now increasingly influenced by speculative trading and macroeconomic trends, similar to other precious metals.

During times of inflation, economic uncertainty, or currency devaluation, platinum often benefits from safe-haven demand as investors seek protection from market instability. The COVID-19 pandemic and subsequent inflationary period highlighted this, with platinum prices rising alongside gold and silver.

However, investor sentiment can also work against platinum. If confidence in industrial growth declines or alternative assets become more attractive, platinum may struggle to gain momentum.

Ways to Invest in Platinum

Platinum is a precious metal ideal for investment. If you are interested and want to invest your money, read this section. Here we have compiled 4 of the easiest and most effective ways to invest in platinum.

Physical Platinum (Bullion, Coins, Jewelry)

One of the easiest ways to buy platinum and other precious metals is to own them physically. This includes bullion, coins and jewelry.

In 2024, platinum in the form of bars and coins is widespread in key countries: the U.S., India, and China. For example, in the fall of 2024, Costco launched the sale of 1-ounce bars of platinum of the highest grade. And starting in 2022, the People’s Bank of China began minting collector coins made of platinum of different weights. There are some charming ones with pandas that are adored by collectors. Also, in India, platinum has become actively used in jewelry, crowding out gold and silver. It is not a problem to find physical platinum in other countries as well.

However, there is one important thing to keep in mind while buying it. Usually, the markup on physical platinum is a few tens of percent over the spot price. And when selling, investors may find buyers reluctant to pay the full price. This problem is easily explained by the lack of liquidity in the small-investment niche. Platinum suppliers don’t consider small bullion and coin producers their primary customers. And retailers are reluctant to buy the metal back.
In other words, it makes sense to consider other ways to invest in platinum.

Platinum ETFs and Mutual Funds

More recently, the platinum market has been supplemented by large exchange-traded funds (ETFs). These offer an easier way to invest in platinum. Here is a list of the most popular of them.

• iShares MSCI Global Metals & Mining Producers ETF (NYSE:PICK): The fund offers a basket of stocks from mining companies around the world.
• Aberdeen Physical Platinum Shares ETF Trust (ARCA:PPLT) and Sprott Physical Platinum and Palladium Trust (ARCA:SPPP): The holdings reflect the price of physical platinum and back their price with platinum bars stored in a vault.
• Global X Physical Platinum (ASX:ETPMPT): A unique fund for investors and Australia, offering access to buy platinum stored at JP Morgan.

We want to pause for a moment. As you can see, the list of ETF funds is small. However, we believe that the market may soon see a boom in platinum funds, so stay tuned.

Platinum Mining Stocks

Another easy way to add platinum to your portfolio is to buy mining stocks. Here’s a list of the main companies of interest to investors:

1. Anglo American Platinum (OTC Pink:AGPPPF,JSE:AMS)
2. Eastern Platinum (TSX:ELR,JSE:EPS)
3. Impala Platinum Holdings (OTC Pink:IMPUF,JSE:IMP)
4. Tharisa (OTC Pink:TIHRF,LSE:THS,JSE:THA)
5. Sibanye Stillwater (NYSE:SBSW)

Many of the above-mentioned companies are actively developing, opening new mining facilities. However, amid the general economic crisis and the transformation of the automotive industry, platinum producers are not experiencing the best times. As we have already mentioned in “Platinum’s Historical Price Performance” section, shares of Anglo American Platinum, for example, are at a localized bottom.

We recommend keeping an eye on further news, especially from the industry giants and trying to catch any fundamental positive news before entering a position.

Platinum Futures and Options

The most convenient way to capitalize on platinum is to trade futures and options. These financial derivatives instruments allow traders to make a bet on the platinum’s price without direct physical obtaining of the metal.

So, let’s say, you are one hundred percent sure the price of platinum will go up in the nearest future. You open a position using corresponding futures contracts and receive your reward if your bet was correct after the settlement.

Recently, we’ve published an article comparing different types of exchanges, where you can find more information about futures trading.

You may try to make your first deal using JustMarkets. It will take 5 minutes, and almost no initial investment. Why not try now?

The Pros of Investing in Platinum

Platinum may not be as popular as gold, but it offers a solid investment case. Moreover, platinum has unique advantages to consider. Let’s break them down.

Diversification

Adding platinum to your portfolio helps spread risk. Precious metals traditionally move differently from stocks and bonds, making platinum a great asset for balancing volatility. Unlike gold, which is heavily tied to investor sentiment, platinum is also driven by industrial demand. It offers a mix of stability and growth potential.

Inflation Hedge

Like other precious metals, platinum tends to hold its value during inflationary periods. When fiat currencies lose purchasing power, hard assets like platinum become more attractive. The COVID-19 pandemic saw a surge in platinum’s price as investors sought safety, proving its role as a protective asset.

Industrial Demand

Platinum is widely used in the automotive, chemical, and electronics industries. With new technologies emerging, the demand for platinum is expected to remain strong, especially as it continues to replace palladium in catalytic converters.

Unlike gold, which is primarily a store of value, platinum benefits from real-world applications and ensures steady demand.

Potential for Price Appreciation

Platinum remains significantly undervalued compared to gold, despite being much rarer. Supply constraints, growing industrial usage, and shifts in the green economy (such as hydrogen fuel cells) could drive prices higher. With production challenges in key mining regions like South Africa, a supply squeeze could further support long-term price growth.

Investors often overlook platinum, but its combination of scarcity, industrial demand, and inflation resistance makes it a compelling asset to consider.

The Cons of Investing in Platinum

Of course, like any other investment, platinum has its downsides. While it offers strong potential, there are risks to consider. Below, we highlight the main challenges investors may face.

Price Volatility

Platinum prices can be unpredictable. Unlike gold, which benefits from strong investor demand during crises, platinum is more tied to industrial use. If the economy slows down or demand from key sectors like automotive weakens, platinum prices can drop sharply. Short-term price swings can be significant, making it a riskier asset for conservative investors.

Storage and Security (for physical platinum)

Owning physical platinum comes with storage challenges. Unlike stocks or ETFs, you need a secure place to keep bars, coins, or jewelry. Safe deposit boxes or vault services add extra costs, and unlike gold, platinum is less commonly accepted by dealers worldwide, making resale slightly more complicated.

Limited Liquidity (for some investment options)

Compared to gold and silver, platinum has a smaller market and lower trading volumes. This can make certain investment options, like platinum mining stocks or ETFs, harder to buy and sell quickly. For physical platinum, liquidity is even more limited. Investors often face wide bid-ask spreads when trying to sell.

To conclude with pros and cons, we made a summary table, take a look.

Advantages and Disadvantages of Investing in Platinum:

Is Platinum a Good Investment for You?

Investing in platinum can be a smart move, but it’s not for everyone. Before adding this precious metal to your portfolio, consider your financial goals, risk tolerance, and investment strategy.

Assessing Your Investment Goals and Risk Tolerance

Platinum, like other commodities, is subject to price fluctuations influenced by supply, demand, and global economic trends. If you’re looking for a stable, long-term store of value, platinum might not be as predictable as gold. However, if you’re willing to take on some risk in exchange for higher potential returns, platinum could be a strong addition to your portfolio.

Investors who actively monitor market trends and are comfortable with short-term volatility may benefit from platinum’s price swings. On the other hand, those who prefer low-risk, steady-growth assets might find traditional investments like gold, bonds, or dividend stocks more suitable.

Platinum’s Role in a Diversified Portfolio

Platinum serves as a valuable diversification tool, particularly for investors already holding stocks, bonds, or traditional commodities like gold and silver. Its unique industrial applications and supply constraints make it a distinct asset that doesn’t always move in sync with other investments.

For a balanced portfolio, platinum can act as a hedge against inflation, currency devaluation, and economic uncertainty. It’s particularly useful in commodity-heavy portfolios or for investors looking to capitalize on long-term industrial demand. However, due to its price volatility, most financial advisors recommend keeping platinum exposure at a moderate level, typically 5-10% of a diversified portfolio.