Platinum the better gold

newsletter # 14 December 29, 2025

Platinum isn’t the “new gold” anymore — but it might be the better gold. In 2025, gold climbed ~75%, while platinum surged ~150%, reflecting stronger fundamentals: scarce above-ground stock, low production, no short-term supply increase, and a price still far below gold.

Newsletter 14

Platinum the new gold?

We are afraid this is no longer the case.

Platinum the better gold?

This now more and more seems to be the case because:

In 2025 gold has moved up ca. 75%
In 2025 platinum has moved up ca. 150%

This outperformance does not surprise us considering the extremely more favourable fundamentals of platinum mentioned in detail in our previous newsletter, such as:

Very low above ground stock
Very low production
No short-term extra production
Much lower price than gold, that stands now at 4 times production cost!

The most probable explanation for the disappointing price performance of platinum until recently is investors neglect/oversight and insufficient awareness raising.

Our mission

The mission of Platico is so far to raise awareness amongst the investment community at large in preparation of the launching of a digital platinum coin to be called OPICO.

Looking at the developments around platinum in the last 3 months we have concluded that the first phase of our mission has succeeded.

Therefore, we have decided to issue our newsletters less frequently as from now until we are ready to introduce the OPICO digital platinum coin.

Recent Developments

J.P. Morgan says platinum, higher for longer

Platinum prices are rising, prompting gradual supply rebalancing, but deficits persist, with a rally ahead. Gold strength supports platinum, forecast to average $1,670/oz in 2026. Palladium faces short-term upside from tariff risk, but weaker long-term demand may pressure prices toward $1,150/oz by late 2026, nearing balance by 2027.

The uses of platinum, gold & silver

Expect platinum demand to rise in investment and jewellery as it increasingly substitutes for gold, while industrial users face higher prices and may seek alternatives. Platinum continues to regain momentum as a store of value, making 2026 a pivotal year for its renewed status.

Platinum setting up for the big squeeze

According to TD’s Dan Ghali, platinum is setting up for a major squeeze. Despite consensus pessimism, automotive demand remains resilient, scrap supply recovery is slow, and mining investment stays weak, sustaining structural deficits. TD models show platinum upside into 2026 above current market expectations.

Deutsche Bank predicts $1,735 platinum

Deutsche Bank has raised its 2026 gold forecast to $4,450/oz, driven by strong demand from China and central banks. Tight global supply also positions silver and platinum for significant upside. For investors, this suggests precious metals may continue to outperform as demand remains robust and supply constraints persist.

Platinum may do very well next year

TD Securities’ Bart Melek says platinum prices may perform very well next year, supported by tight supply, strong industrial and investment demand, and limited new mining capacity. Despite broader market skepticism, these fundamentals could drive a notable rally. Similar pressures may also benefit palladium, though platinum’s broader uses give it strong upside potential.

Platinum Investment Demand to Rise in 2026

Platinum’s 2026 physical balance depends partly on investor sentiment, but investment demand could reach ~500 koz without relying on ETFs, as bars, coins, and exchange inventories contribute to the total. With bar and coin demand already near that level in 2023, investment interest may rise further as platinum strengthens its role as a store of value.

CME platinum options see record liquidity

Platinum options eased to 950 contracts in November as prices softened near $1,500/oz, pressured by recovering South African output and cooler Chinese demand. Despite the pullback, CME platinum options liquidity remains at record levels, averaging 1,500+ contracts/day through 2025, with Q2–Q4 marking the strongest trading periods on record.

Asymmetry on platinum

Platinum futures exhibit a highly asymmetric risk-reward profile. Recent market structure points to strong upside potential into 2026, with positive catalysts capable of driving larger price reactions than downside pressures. Historical positioning reflects elevated volatility, and modeled scenarios continue to favor rallies that outpace potential declines.

Hybrid cars still rely on catalytic converters

The FT argues that platinum could be poised for a renaissance, particularly if hybrid-vehicle adoption remains stronger than full electric vehicles. With slower EV uptake in the US and Europe, demand for platinum-containing catalytic converters may persist, supporting the metal’s price and investor interest after years in gold’s shadow.

Marc Faber on Platinum

Faber and Williams warn the dollar’s reserve status could end within 10 years, blaming decades of crony capitalism and excessive money printing for weakening the West. They highlight Asia’s economic momentum, question digital currencies as reliable hedges, and favor physical precious metals, with platinum seen as a prime target for a future supply-driven squeeze.

Indian platinum imports

India’s platinum imports show sustained strength in 2025, already matching or surpassing 2024 levels across nearly all months. This reflects resilient domestic demand momentum, reinforcing platinum’s emerging investment and jewellery appeal amid shifting global precious-metal dynamics.

Numismatics Continue to Gain Demand

Faber once noted that in the 1970s, a Swiss bank’s most profitable division was numismatics, reflecting the strong margins in rare coins. While numismatics typically carry wider bid-ask spreads, current 60–80% premiums appear extreme. More common and sustainable investor premiums generally range between 7–15%.