Platinum versus Gold: Which precious metal really pays off in 2026?

Since mid-2025 at the latest, investors face a burning new question: Is platinum more expensive than gold—and if so, should you invest in the cheaper precious metal? The answer may surprise you. Although platinum is currently trading at a lower price than gold, closer examination reveals entirely different opportunities and risks. While gold is valued significantly higher at over $4,850 per ounce in February 2026, platinum has shown a completely different dynamic in recent months—a rally of over 200 percent. What investors need to know.

The Massive Price Gap Between Platinum and Gold

If you’re wondering whether platinum is more expensive than gold, the answer is clear: no. With about $2,045 per ounce in early February 2026, platinum is well below the gold price of around $4,850. The absolute price difference has widened to over $2,700 per ounce—an all-time extreme. Interestingly, this was not always the case. In 2014, platinum traded at over $1,500 per ounce, well above the then gold price.

This development raises questions about valuation. The so-called platinum-gold ratio—the quotient of platinum price to gold price—is currently below 0.42, a level not seen since 2011. For over a decade, this represented an unprecedented undervaluation of platinum relative to gold. But this extreme divergence could become interesting for investors.

Why Prices Are Diverging: Demand and Structure

To understand why platinum remains so much cheaper than gold despite its rarity, one must analyze the fundamental differences between these markets. Gold is primarily traded as a pure investment asset—its demand is relatively stable and supported by monetary uncertainty. Platinum, on the other hand, is a hybrid: it functions as an investment but is also driven by industrial demand.

This dual nature explains platinum’s turbulent history. While gold has hit new all-time highs since 2019—peaking at over $5,500 in late January 2026—platinum remained stagnant around the $1,000 mark for a long time. The main reason was the weakening automotive industry. Platinum is mainly used in diesel catalysts, whose demand has eroded in recent years. But starting mid-2025, a surprising turnaround occurred.

The Spectacular Rally: 200 Percent in Just a Few Months

Since June 2025, platinum’s price movement has resembled a roller coaster. The price soared from nearly $900 to a new all-time high of $2,925 on January 26, 2026—an incredible increase of over 200 percent within a few months. This explosive upward trend was driven by a perfect combination of several factors:

Supply-side shortages: South Africa, which supplies about 70-80 percent of global platinum production, faced serious challenges. Mine output fell by 5 percent in 2025, reaching the lowest level in five years. This resulted in the third consecutive deficit year with an estimated shortfall of 692,000 ounces.

Extreme physical scarcity: Lease rates exploded, and the London OTC market showed strong backwardation—signs of extreme tightness. With around 73,500 NYMEX contracts (equivalent to about $8.3 billion), the platinum market is also significantly less liquid than gold, which exceeds $200 billion.

Geopolitical and macroeconomic catalysts: Trade conflicts, US tariffs, tensions between the US and Iran, and a weak US dollar pushed commodity prices higher overall. Notably, after gold’s extreme rise, investors looked for cheaper precious metals and discovered platinum.

Surprisingly stable demand: Bar and coin demand remained robust, ETF inflows were strong, and total investments in platinum increased by an impressive 47 percent in 2025.

This convergence of factors led to a surge—but the volatility also revealed the market’s structural weaknesses.

Extreme Volatility as a Warning Signal

The correction after the peak showed the vulnerability of the illiquid platinum market. In just six trading days, the price plummeted 35.7 percent to $1,882 before rebounding nearly 20 percent the next day. Such fluctuations are hardly conceivable in the gold market. They illustrate a fundamental problem: low liquidity amplifies both upward and downward movements dramatically. For conservative investors, this poses a significant risk.

Platinum versus Gold: The Outlook for 2026

According to the World Platinum Investment Council (WPIC), the market will normalize in 2026. The WPIC expects a nearly balanced supply-demand ratio with 7,404 koz of supply versus 7,385 koz of demand. Total supply is projected to grow by about 4 percent, while demand is expected to decline by 6 percent—mainly due to anticipated net outflows in the investment sector, as ETF investors might take profits at higher prices.

Different analysts forecast widely varying platinum prices:

• Heraeus Precious Metals: $1,300 to $1,800
• Bank of America Securities: $2,450
• Commerzbank: $1,800

This broad range underscores the uncertainty. However, there is an optimistic outlook: WPIC expects deficits to re-emerge after 2026—at least until 2029. The hydrogen economy could add an additional 875,000 to 900,000 ounces annually, further intensifying long-term supply constraints.

Opportunities and Risks for Different Investor Types

For active traders: The increased volatility offers numerous trading setups. Instruments like CFDs or futures allow speculation in both directions. A proven strategy is trend-following using moving averages (10- and 30-day). Strict risk management is crucial—max 1-2 percent of total capital per trade, combined with stop-loss orders. For example: with €10,000 total capital and a 1 percent maximum risk (€100), with a 2 percent stop-loss below entry and 5x leverage, the position should not exceed €1,000.

For conservative investors: Platinum could serve as a diversification component in an existing portfolio, as it has its own supply-demand dynamics and can sometimes move counter to equities. Especially in US equity portfolios, platinum might provide a hedge effect. Suitable instruments include ETCs, ETFs, or physical platinum.

Critical consideration: Is platinum more expensive than gold a relevant question for allocation? The simple answer “no” is insufficient. The price per ounce is only one aspect. More relevant are the different roles of both metals: gold as an inflation hedge and stable store of value, platinum as a beneficiary of structural shortages and industrial demand for green technology.

What Investors Should Watch in the Coming Months

The Federal Reserve’s monetary policy remains central. Hawkish signals and the nomination of Kevin Warsh as next Fed chair suggest slower rate cuts—supporting the US dollar and potentially weighing on platinum (and gold).

Substitution risks should also be monitored. If platinum prices rise sharply, automakers might increasingly switch to palladium, reducing demand.

The structural supply crisis remains a supporting factor. South Africa’s production shortfalls are unlikely to be quickly resolved, which theoretically limits downside risks for platinum.

For platinum investors, tracking lease rates is essential—they serve as early indicators of market tensions and future price movements.

Conclusion: Is Platinum More Expensive Than Gold? The Wrong Question

Whether platinum is more expensive than gold can be answered quickly: not at the moment. The more relevant question is: which metal fits my investment strategy and risk appetite? Gold offers stability and long-term inflation protection. Platinum offers volatility, speculative appeal, and the potential to profit from a structural supply crisis. In 2026, this divergence could create opportunities for different types of investors.