Is platinum on its way to become the next gold in investing?
In 2025, platinum has emerged as a surprising frontrunner in the world of precious metals, capturing the attention of investors who once focused solely on gold.
Platinum rose one per cent to $1,336.08 on Thursday. Earlier in the session, the metal hit $1,348.72, its highest level since September 2014, Reuters reported.
'Platinum lease rates are high, so the refineries are not looking to manufacture because the cost is much higher. So demand is coming, but there's not enough supply... above ground inventory is tight,' said Brian Lan, managing director at GoldSilver Central, Singapore.
Platinum lease rates refer to the cost of borrowing platinum for a set period of time. High lease rates can indicate a shortage of platinum in the market.
With a remarkable surge of nearly 49 per cent this year, platinum has outpaced both gold and silver, prompting many to ask: could platinum be the next gold in terms of capital gains?
The answer lies in a combination of industrial demand, supply constraints, and a shifting global energy landscape. Platinum isn't just a precious metal — it's a workhorse in the industrial world. It plays a critical role in catalytic converters for vehicles, hydrogen fuel cells, and other clean energy technologies. As the world accelerates toward decarbonisation, platinum's relevance has only grown.
At the same time, supply has tightened. Mining output dropped by 13 per cent in the first quarter of 2025, contributing to a projected market deficit of nearly one million ounces. According to the Platinum Quarterly, the platinum market is expected to record a deficit of 966,000 ounces this year, which follows a 992,000 ounces deficit in 2024. The forecast platinum market deficit for 2025 has been increased from the 848 koz reported in March primarily due to upward revisions in global platinum demand.
This imbalance between supply and demand has helped drive prices upward.
Despite this rally, platinum still trades at just over half of its 2008 all-time high, making it appear undervalued—especially when compared to gold, which is currently at record levels. This relative undervaluation, combined with its industrial utility, has made platinum an increasingly attractive option for investors looking to diversify their portfolios.
Gold, long considered the ultimate safe haven, remains a strong performer with gains of around 30 per cent this year. But platinum's dual identity—as both an industrial and investment metal—offers a different kind of opportunity. It's more volatile, yes, but also potentially more rewarding.
'A combination of industrial demand, supply constraints, clean energy applications and pricing make platinum the most attractive precious metal in 2025,' Kent Thune, analyst at etf.com, wrote.
In short, while gold continues to shine, platinum is beginning to sparkle in its own right. For investors willing to embrace a bit more risk in exchange for higher potential returns, platinum may very well be the metal to watch.
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