Platinum vs Gold: Price History
For most of modern history, platinum was the more expensive metal. In 2008, platinum traded above $2,200 per ounce — roughly twice the gold price at the time. The two metals reached parity around 2011-2012, and gold has traded at a premium ever since. The divergence accelerated after 2015, and by the mid-2020s gold trades at more than 2-3x the price of platinum. This historic inversion represents one of the most dramatic shifts in precious metals pricing. The platinum-to-gold ratio, which spent decades above 1.0, now hovers around 0.3-0.4 — meaning platinum is worth less than half an ounce of gold. For contrarian investors, this historically wide discount is either a warning sign or an opportunity.
Why Is Platinum Cheaper Than Gold?
Several structural forces have conspired to push platinum down relative to gold over the past decade.
- Diesel demand collapse — Platinum's largest industrial use is in diesel catalytic converters. The Volkswagen Dieselgate scandal in 2015 triggered a global shift away from diesel vehicles, gutting a major demand pillar
- Limited investment demand — Unlike gold, platinum has never been widely adopted as a monetary metal. Investor participation remains a small fraction of the market compared to gold
- Smaller ETF market — Platinum ETFs hold roughly 3 million ounces globally, compared to over 80 million ounces in gold ETFs. This limits institutional participation and price support
- No central bank buying — Central banks hold thousands of tonnes of gold as reserves but effectively zero platinum. The massive central bank gold buying wave since 2022 has no parallel in platinum
- Gold benefiting from de-dollarization — Geopolitical shifts and sanctions have driven record gold purchases by central banks in China, India, Turkey, and Poland. Platinum has not benefited from this trend
- South African supply risk premium has faded — While 70%+ of platinum comes from South Africa, the market has largely priced in supply disruptions rather than paying a scarcity premium
Investment Comparison
A side-by-side comparison of gold and platinum across key investment metrics reveals why gold dominates as a financial asset while platinum remains primarily an industrial commodity.
- Annual Mine Supply – Gold: ~3,600 tonnes | Platinum: ~190 tonnes. Platinum is far rarer by production volume, yet trades at a steep discount
- Market Capitalization – Gold: ~$16+ trillion (above-ground stock) | Platinum: ~$30-40 billion. Gold's market is roughly 400x larger
- Investment Demand Share – Gold: ~25-30% of annual demand | Platinum: ~5-10%. Gold has a far larger dedicated investor base
- Annualized Volatility – Gold: ~15% | Platinum: ~20-25%. Platinum is meaningfully more volatile due to its thinner market and industrial exposure
- Liquidity – Gold is one of the most liquid assets on Earth with 24/7 trading and deep futures markets. Platinum futures volume is a fraction of gold's
- Storage Costs – Roughly comparable per dollar value — both can be stored in vaults or allocated accounts. Platinum's higher density means less physical space per ounce
- Historical Real Returns – Gold has outperformed platinum significantly over the past 15 years. Over 50+ year periods, both have roughly kept pace with inflation
Key Differences for Buyers
Gold is the established monetary asset — it offers deep liquidity, central bank backing, a massive global market, and a historical track record as a safe-haven asset during crises. It is the most widely held and traded precious metal. Platinum is primarily an industrial metal with a smaller investment market. The bull case rests on the hydrogen economy: platinum is a key catalyst in PEM electrolyzers and fuel cells. If hydrogen adoption scales as projected, platinum demand could increase by 500,000+ ounces annually — a meaningful amount given total annual supply of ~6 million ounces. The platinum-gold ratio near historic lows means platinum is historically cheap relative to gold, though structural changes in demand may justify different pricing than in the past. The two metals have very different risk profiles, liquidity levels, and demand drivers. Anyone considering either should consult a financial advisor.