Platinum is attracting more and more individual investors. It is rare, used in industry, and its market remains smaller than that of gold. But when it comes to buying physical platinum, one question often arises: why can the price of a bar be much higher than the spot price? The answer lies in several factors. The spot price indicates the theoretical value of the metal. The physical product, on the other hand, includes sales tax, manufacturing, transportation, packaging, storage, and the actual availability of the product. On October 12, 2026, the spot price of platinum was close to €48,774 per kilogram. At the same time, a 1-ounce platinum bar was priced at €2,806, with an intrinsic value of approximately €1,516. The premium thus stood at 85.06%. For the investor, this figure is crucial. It determines not only the entry price but also the effort the market will need to make to ensure the transaction is profitable.
Key takeaways from the article:
- The premium on physical platinum may come as a surprise. It reflects more than just a markup; it includes VAT, manufacturing costs, distribution costs, and the scarcity of available products.
- Since January 2026, platinum has been trading in a highly volatile market. The metal rose sharply, then corrected, while supply pressures persisted.
- Physical platinum is less liquid than gold. The spread between the purchase price and the resale price can therefore be significant, especially for smaller sizes.
- Before buying, you should calculate the break-even point. If the premium reaches 85%, the metal’s price must rise sharply to offset the price paid.
Highly Volatile Platinum Prices in 2026
The year 2026 was a turbulent one for platinum. The metal reached an all-time high of $2,923.70 per ounce in January 2026. It then corrected sharply. On October 12, 2026, the price stood at nearly $1,704.70 per ounce, down about 4.22% over the past month.
This correction does not mean that the market has become oversupplied. The World Platinum Investment Council notes that available stocks remain low after several years of deficits. In its report published in September 2026, it cites a limited annual surplus of 265,000 ounces, but also above-ground stocks representing only 3.4 months of global demand at the end of 2026.
The message is therefore nuanced. Platinum remains a rare metal. But its price may fall in the short term when the dollar rises, when interest rates weigh on precious metals, or when investors reduce their positions.
Why the physical price exceeds the spot price
The platinum spot price serves as a benchmark. However, it does not correspond to the price paid by an individual for a delivered, sealed, and available bar.
The first factor is VAT. In France, physical platinum is not subject to the same tax treatment as investment gold; it is subject to VAT. The BOFiP specifically classifies gold, silver, and platinum among the precious metals subject to applicable tax rules. For the buyer, this means that part of the price paid does not represent the metal itself, but rather taxes.
The second factor is manufacturing. A 5-gram, 10-gram, or 1-ounce ingot requires precise workmanship: refining, casting or minting, inspection, certification, sealing, transportation, and insurance. These costs apply to all sizes. However, they weigh much more heavily on a small product than on a large professional-grade bar.
The third factor is liquidity. Physical platinum is bought and sold much less frequently than gold. There are fewer products available, less inventory on hand, and fewer end buyers. This shallow market widens the spread between the purchase price and the resale price.
An example of an 85% bonus
The example of the 1-ounce ingot is telling. On October 12, 2026, it was listed at €2,806 for purchase on our website. Its intrinsic value was €1,516.27. The difference therefore amounted to €1,289.73, or 85.06% of the metal content.
This difference can be broken down into three components. First, VAT. Out of a total price of €2,806 (including VAT), it amounts to approximately €467.67. Next, there is a remaining pre-tax difference of about €822. This portion covers manufacturing costs, distribution, insurance, inventory carrying costs, and the sales margin. Finally, resale must be taken into account. If the spot price does not rise, the investor will not be able to resell at the price at which they purchased it.
The format significantly changes the analysis. The 100-gram platinum bar, observed at the same time, had an intrinsic value of nearly €4,874.99 and a purchase price of €7,315. Its premium reached 50.05%. It remains high, but it is significantly lower than that of a smaller format.
What is the break-even point?
The calculation is simple. If an investor buys a 1-ounce bar for €2,806, with a metal value of approximately €1,516, the price of platinum must rise by about 85% to reach the investor’s purchase price. This is not a forecast. It is a mechanical threshold.
In other words, the metal price must rise very sharply before the purchase breaks even. And this calculation does not yet take into account any potential taxes on resale. For a 100-gram bar, the break-even point is lower, but it remains challenging.
That is why the profitability of platinum depends primarily on three factors: the size of the investment, the premium level at the time of purchase, and the holding period. The higher the premium, the more the investor must adopt a long-term perspective.
Should you buy physical platinum?
Physical platinum can have a place in a diversification strategy. It is rare, useful to industry, and exposed to sectors such as automotive, chemicals, glass, hydrogen, and electrical equipment. But it should not be approached in the same way as gold.
Before buying physical platinum (coins or bars), you should compare formats, check the premium, assess the intrinsic value, and calculate your break-even point. A high premium may be justified if the product is rare, readily available, and held for the long term. It becomes riskier if the goal is a quick resale.
So the real question isn’t just: Will the spot price of platinum rise? The right question is: By how much must it rise to cover the sales tax, the premium, and the exit costs? It is this answer that allows you to make a clear-headed purchase.
Conclusion
Physical platinum can offer attractive diversification, but it requires a more careful analysis than gold. Its price does not depend solely on the spot price. VAT, manufacturing costs, product availability, and market liquidity all play a major role in the actual price paid. For a retail investor, the challenge is therefore not just to anticipate a rise in the metal’s price. It is also necessary to assess the premium at the time of purchase and understand the break-even point. The higher this break-even point, the more the investment must be viewed as a long-term commitment. Platinum may have potential, but it must be purchased with a methodical approach, patience, and clear-headedness.
By La rédaction Godot & Fils
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