While gold continues to play its traditional role as a safe haven, other precious metals such as platinum are attracting increasing interest. More rare than gold, but often less publicized, platinum can be considered as halfway between gold and palladium. This metal appears as a good alternative to energize and diversify its portfolio.  

But could platinum become a serious alternative to gold in 2025? Is it wise to invest in it today? This article offers an in-depth analysis of the platinum market and the interest of owning this metal today.  

SUMMARY OF ARTICLE: 

• 1) Platinum: a market concentrated in South Africa
• 2) A broken platinum market? 
• 3) Platinum and gold: what are the differences for investors?
• 4) What dynamics for platinum in 2025? 
• 5) The price of platinum up

1) Platinum: a market concentrated in South Africa 

In 2024, according to data from the World Platinum Investment Council (WPIC), platinum mining accounted for 79% of all metal supply, equivalent to 5.8 million ounces or approximately 170 tonnes. But since 2015, global platinum production has declined by -6.4%. Moreover, global platinum production is highly concentrated geographically. In 2024, about 70% of the world’s platinum came from South Africa, followed by Russia (11%), Zimbabwe (8%) and Canada (4%). This concentration makes supply vulnerable to geopolitical risks and logistical disruptions. 

The trend is even more pronounced in the first quarter of 2025. Global platinum mining production fell 13% year-on-year to 1.086 million ounces, the lowest quarterly level since the second quarter of 2020. This decrease is mainly due to disturbances in South Africa, where exceptionally heavy rainfall resulted in a 10% decline in refined production to 715 000 ounces. This example shows the extreme sensitivity of the market to production conditions in South Africa.  

This geographical concentration is added to a low level of stocks. Indeed, platinum stocks are relatively limited, with a large portion held in South Africa and by financial institutions. The WPIC estimates that in 2024, global stocks were around 2.4 million ounces, down continuously since 2020. In addition, available stocks of platinum are expected to decrease by 31% in 2025, reaching 2.16 million ounces, which represents only three months of demand coverage. 

2) A broken platinum market?  

Platinum has a major advantage, unlike its cousin palladium. While palladium is almost exclusively used in the automotive industry, platinum is required for a wider range of applications. Indeed, the platinum market in 2024 is destined for 38% for the automobile, 27% for the jewellery, 27% for industry, and 8% for investment.  Although platinum is rarer than palladium, it has a more diversified demand and a more concentrated supply.  

In this context, investors may consider platinum as an asset whose market is closer to that of gold than palladium. It should also be noted that there has been a chronic and persistent production deficit over the past three years. The supply is about one million ounces lower than the demand, a situation that is not unlike that of the silver market. These chronic deficits generally tend to cause a delayed rise in the price of platinum, as was the case in 2020-2021. 

Source : WPIC Platinum Quarterly Q1 2025 

We will also note that within the automotive demand, Europe and Japan occupy a particularly important place. This suggests that a rapid shift to electric vehicles could put pressure on the platinum market. 

Source: Impacts of pollution standards on global demand for platinum group metals: the case of platinum, palladium and rhodium | MineralInfo

3) Platinum and gold: what are the differences for investors?

In an investment portfolio, gold acts as a hedge against risks or inflation over a long period, whereas platinum is more of a technical diversification tool, offering exposure to specific industrial dynamics. Platinum thus enables investors to boost their portfolios rather than structure them.

It should be noted that gold has a relatively stable, low-volatility behaviour, whereas platinum is more volatile, due to its dependence on industrial demand. What's more, gold enjoys particularly good liquidity on the financial markets, making it easy to buy and resell, unlike platinum, whose liquidity remains more restricted and depends more on specialized markets.

In terms of global supply, gold is mined in a wide variety of countries, guaranteeing a more diversified supply, while platinum is mainly produced in South Africa and Russia, increasing its exposure to geopolitical risks. In terms of demand, gold is mainly sought after for jewelry and investment purposes, while platinum is used more in the automotive industry, although it also retains a place in jewelry.

4) What's the outlook for platinum in 2025?

Global demand for platinum is estimated at 7.96 million ounces in 2025, down 4% on 2024. This decrease is attributed to lower demand in the automotive and industrial sectors, despite an increase in the jewelry and investment segments.

In detail, demand from the automotive sector is forecast to fall by 2% in 2025, to 3 million ounces. This is due to a 7% drop in demand for heavy vehicles, partially offset by a 2% increase for off-road vehicles. From a long-term perspective, industrial demand is under pressure due to the transition to electric vehicles, which use fewer platinum-based catalysts. However, the rise of hydrogen fuel cells (which use platinum as a catalyst) could compensate for this loss.

Conversely, demand for platinum jewelry is set to increase by 5% in 2025, reaching 2.1 million ounces. Finally, industrial demand for platinum is set to fall by 15% in 2025, to 2.1 million ounces. This sharp downturn would be driven by the glass industry, due to a slowdown in investment in new production capacity, particularly in Asia.

Source: WPIC Platinum Quarterly Q1 2025

On the supply side, production remains concentrated in South Africa and Russia, two areas marked by political and energy uncertainties. Persistent supply problems may therefore create tensions on the market. Overall, mining production is expected to fall by 6% over 2025, which probably suggests a persistent supply deficit on the market.

5) Platinum prices on the rise

Since January 1, 2025, the platinum price has risen by around 19%, returning to the highs reached in 2024, 2023 and 2022, at around $1,050 per ounce. A clear break through this technical resistance zone could pave the way for a new bullish phase, with the aim of reaching the levels of 2021, when platinum peaked at almost $1,350 an ounce.

This rise in the platinum price seems to confirm an upward trend that began in March 2020, marking the end of a prolonged downward cycle that began after the 2008 financial crisis. While the market outlook now appears more favourable, platinum remains a more speculative and volatile asset than gold, whose safe-haven function remains better established.

For investors wishing to hold platinum directly, several solutions exist. The most traditional method is to buy platinum ingots or bars from specialized retailers, often in sizes ranging from 1 oz to 1 kg. These products must be certified by recognized smelters (e.g. Heraeus, Valcambi...). A popular and practical alternative, given the price of the metal, is to acquire platinum bullion coins, such as Canadian Maple Leafs and Britannias, which combine metal value with increased liquidity. These coins are recognized on the international market and sometimes qualify for favorable tax treatment.

Conclusion

Platinum is a unique metal, with demand divided between the automotive, investment, jewelry and industrial sectors. Nevertheless, industrial demand, the traditional driver of the market, is showing signs of fragility in the face of the transition to electric vehicles. On the supply side, the geographical concentration of production, essentially in South Africa, exposes the market to geopolitical, climatic and logistical hazards. The current situation in South Africa is thus conducive to a marked reduction in platinum production.

The chronic shortfall in production observed over the past few years has fuelled a new uptrend in platinum prices since 2020. This trend could continue, depending on a number of factors:

• persistent uncertainty regarding industrial demand
• Supply disrupted by logistical and geopolitical difficulties
• Renewed interest from institutional investors seeking diversification.

In comparison, the price of gold is on a steadier uptrend, buoyed by its status as a safe-haven asset and by persistently uncertain monetary policy. Nevertheless, platinum is gradually returning to the spotlight, retaining its status as a precious metal. Weak demand in 2025 is largely offset by low mine production, suggesting that a rebound in demand in the next few years could result in a significant demand shock.

For investors, the acquisition of coins or ingots remains a popular means of gaining exposure to platinum's evolution. Investing in this metal is above all a question of diversification within precious metals.