Check platinum if you missed gold and silver bull runs: Demand-supply favourable

Kolkata: Gold and silver have hogged the headlines with their returns both in 2024 and 2025. If you have missed the bull runs in both, do not feel disheartened. World Platinum Investment Council (WPIC) has held out the hope that the platinum market is favourable for investors since the demand-supply position is favourable. Incidentally, on Dec 24, spot platinum price surged 3.3% to $2,351.05 an ounce and in the process it touched a record high of $2,377.50 an ounce.

Speaking of the structural advantage of platinum, it seems somewhat similar to silver, which is both a precious and an industrial metal. If investors in this country are exploring options to diversify beyond conventional precious metals and stocks, platinum could offer a new avenue. One has the option of buying financial instruments based on platinum or the metal itself.

Data show that in 2025, the price of platinum has surged 121%. What was at Rs 25,160 per 10 gm at the start of 2025 reached Rs 55,350 on Dec 19. This is in step with the global rise. Over the same period, gold has jumped about 75% while silver prices zoomed more than 130%. The rise in stock indices stand no comparison with those of precious metals this year.

It is almost similar to gold and silver. One can invest by purchasing the metal in the form of bars and coins. These can be procured from authorised online platforms and/or jewellers. One must remember to check and obtain certification of purity of the metal. However, just like gold and silver ETFs (exchange traded funds) are a more modern and risk-free investment option.

But platinum ETFs are available for investment only in stock exchanges abroad. They have not yet been introduced in India. However, one can invest in platinum ETFs through Indian platforms such as ICICI Direct, Groww and/or Zerodha. Like other ETFs these are backed by physical platinum. The other point to remember is that these ETFs are denominated in dollars and one has to follow norms for investing abroad. Also exchange rate fluctuations have to be taken into account. However, the investment in ETFs obviates the need to safe keep metallic platinum (just like gold and silver).

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Platinum is now ranked as the third most traded precious metal after gold and silver. According to World Platinum Council data, the four sectors that trigger maximum demand for this metal are automotive (39%), jewellery (28%), industrial use (24%) and investment (9%). The quantity for demand in 2025 has been set at 7.88 million ounces. The amount is a bit less than that in 2024 but supply constraints continue to support prices.

The uses of platinum are varied -- in catalytic converters in automobiles, in electronics and fertilisers and in jewellery, apart from medical devices and pharmaceuticals. This helps in stimulating demand even when a few sectors go down.