When it comes to precious metals, many people think of gold first. For centuries, it has been a symbol of security and the preservation of values, writes the German public media ARD.
Gold remains in demand in 2025 - geopolitical tensions, serious economic concerns and, last but not least, trade disputes triggered by US President Donald Trump are making investors turn to "safe haven".
Platinum is rising in price
Although gold remains the center of attention, another precious metal is ahead of it in terms of price growth: since the beginning of the year, platinum has risen by 36%, while gold – by "only" 31% over the same period, the German publication recalls.
In the middle of last week, the price of platinum reached 1,272 US dollars - its highest level since February 2021. However, one troy ounce (31.1034768 grams) of platinum cost only about a third of the price of one troy ounce of gold. The historical record in the price of gold was reached in April, when it was traded for 3,500 dollars.
Who buys platinum?
According to experts, record-high gold prices are increasingly directing consumers to cheaper alternatives such as platinum. "Rising gold prices are forcing jewelers to seek diversification" - this is the conclusion reached by Bank of America analysts. Demand for platinum has recently grown significantly, especially in China, with the People's Republic importing 11.5 tonnes of platinum in April - significantly more than the amount it imported a year ago.
Global demand for platinum jewelry is likely to increase by five percent this year, analysts say. Bank of America experts warn that even a one percent shift in demand from gold to platinum jewelry would be enough to double the supply deficit for the white precious metal.
Unlike gold, platinum is also increasingly in demand from industry: In recent years, this sector has accounted for between 29 and 42% of global platinum demand, according to the World Platinum Investment Council (WPIC). Platinum is used in the chemical industry, electronics and automotive industries - there the white metal is used in catalytic converters for diesel cars, for example in fuel cell models such as the Toyota Mirai. Experts believe that the hydrogen economy will be one of the main drivers of growth in platinum consumption in the long term.
Trade conflicts - a risk for the price of platinum?
The high demand for industrial needs is facing a structural supply deficit - mainly due to reduced production in South Africa and Russia. However, some price reduction in the short and medium term is not ruled out - if the trade conflict escalates.
Carsten Fritsch, a raw materials expert at Commerzbank, told ARD that there are already reports of impending production disruptions in the automotive sector due to a shortage of rare earth minerals. In this regard, he recalls that China has imposed restrictions on the export of such critical raw materials.
Strong demand for platinum on the stock exchange
Meanwhile, investors on the stock exchanges have also rediscovered platinum. After the traditional platinum week in London in May, there has been a significant increase in exchange-traded commodity trading (Exchange Traded Commodity – ETCs). Experts explain the high demand from investors not least by the fact that at times platinum was significantly undervalued relative to gold, which means that there is a great potential for catching up.
In April, the difference in the prices of gold and platinum reached its peak - over 2,400 US dollars. "At that time, gold was three and a half times more expensive than platinum, which has not happened since platinum was traded on the stock exchange, which was almost 40 years ago", emphasizes commodities expert Fritsch. In the meantime, the difference between the two prices has fallen to $ 2,100, ARD points out.
Silver reaches 13-year high
In recent days, the value of silver has also risen sharply, its price exceeding $ 36 per troy ounce - an increase of 26 percent since the beginning of the year. Thus, the precious metal reached its 13-year high. The saying "not all that glitters is necessarily gold" has become increasingly relevant in recent times.
Author: Angela Göpfert ARD