Is it worth buying platinum in 2026? The current investment decision between opportunities and risks

After a remarkable rally of over 100% since mid-2025, many investors face the key question: Is now the right time to buy platinum? The answer depends on personal goals, risk tolerance, and the chosen investment format. With platinum prices, which hit an all-time high of $2,925 per ounce in January 2026, now fluctuating around the $2,000–$2,100 mark, we are at a critical point where opportunities and risks are equally present.

Why buy platinum? A surprising renaissance after years of stagnation

For a long time, platinum was considered a forgotten precious metal in the shadow of gold and silver. But between 2015 and mid-2025, that was justified: while gold prices steadily reached new all-time highs and broke through the $5,500 mark in January 2026, platinum hovered around $1,000. This divergence was unprecedented – for the first time since 2011, both metals traded in a configuration where platinum was significantly below gold.

However, starting June 2025, a trend reversal occurred. In October 2025, platinum prices broke the $1,700 barrier for the first time in 14 years and surged to an all-time high by January 2026. This explosive development resulted from a combination of several factors:

Structural supply deficit: 2025 was already the third consecutive deficit year, with an estimated shortfall of 692,000 ounces. South Africa, which supplies 70–80% of global platinum, struggles with underinvestment, power outages, and operational challenges. Mine production fell 5% in 2025 to the lowest level in five years.

Extreme physical scarcity: Lease rates and backwardation on the London OTC market indicated a scarcity premium, pointing to significant shortages. The inventory market was under strain like never before.

Geopolitical catalysts: Trade conflicts, US tariffs, and tensions between the US and Iran pushed commodity prices higher overall. Platinum benefited considerably as an inflation hedge and scarce resource.

Gold spillover effect: After the extreme rise in gold, investors looked for cheaper precious metal alternatives. With platinum over $2,700 below gold per ounce, a “relative bargain” emerged.

Weak US dollar: A falling dollar makes commodities cheaper and more attractive internationally, boosting demand.

Investment boom: ETF inflows hit record levels, and investments in platinum bars and coins increased by 47% in 2025.

Buying platinum: Who should consider it and in what form?

The question of whether buying platinum makes sense must be answered with nuance – because the investor type determines the strategy.

For active traders: The extreme volatility of recent weeks – gains of over 40% followed by corrections of 35% within days – shows trading potential. Leveraged CFD trading on platinum can offer interesting opportunities. A proven beginner strategy is trend-following with moving averages: buy signals occur when the fast 10-day average crosses above the slow 30-day average from below. Exit signals are the opposite. With a 5x leverage and strict risk management (max 1–2% of total capital per trade), even small accounts of €1,000 can manage larger positions.

For conservative buy-and-hold investors: Here, platinum is useful as a portfolio diversifier. Since the metal has its own supply and demand dynamics and sometimes moves counter to stocks, it can serve as risk mitigation. Long-term, the hydrogen economy could become a demand driver: the World Platinum Investment Council (WPIC) forecasts an additional need of 875,000 to 900,000 ounces by 2030 from fuel cells and electrolyzers.

Buying physical platinum: Coins, bars, or jewelry can be purchased from precious metals dealers or online platforms. Disadvantages include storage costs and insurance.

ETCs and ETFs: These instruments track platinum prices one-to-one and can be easily integrated into a portfolio. They are a straightforward alternative for beginners to physical storage.

Futures and options: Suitable only for experienced investors. They carry high profit potential but also significant risk of loss.

Platinum CFDs with leverage: The investment threshold drops to just a few euros – ideal for active traders with strict risk management and stop-loss discipline.

The historical perspective: From rarity to industrial metal

To understand whether buying platinum today makes sense, a look into the past helps. Unlike gold, platinum’s value is not primarily driven by investor sentiment – it is also jewelry metal, industrial raw material, and investment asset. This multifunctionality leads to different price trends.

Europeans could only access physical platinum from the 19th century onward, after Russia first minted state platinum coins. An export ban in 1845 caused oversupply and price declines. It was only the industrial demand in the 20th century – initially as a switch contact in telegraphs, later through the patenting of the Oswald process for nitric acid production in 1902 – that propelled platinum into the automotive industry. In 1924, the price reached six times the gold price.

After World War II, platinum prices fell again but recovered spectacularly from 2000 onward. In March 2008, platinum hit its then all-time high of $2,308 – driven by financial crisis uncertainty and the diesel boom years. This was followed by a 17-year stagnation until the recent rally.

Platinum price 2026: Market analysis and expert scenarios

The World Platinum Investment Council forecasts a nearly balanced market in 2026, with minimal surpluses of only 20,000 ounces – a stark contrast to the three deficit years prior. Mine production is expected to grow by 2% to 5.622 million ounces, with recycling supply increasing by 10%, driven by higher prices for catalytic converter recycling.

On the demand side, a decline of 6% to 7.385 million ounces is expected. The biggest drop is anticipated in investments, with a -52% decline, as WPIC expects normalization of trade tensions, reduction of CME inventories, and profit-taking. Automotive demand is expected to decrease modestly by 3%, while industrial demand (e.g., glass recovery) is set to grow again.

Different expert forecasts highlight the uncertainty:

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

This range of over $1,000 per ounce illustrates how difficult reliable predictions are.

Current market dynamics: Fragile liquidity after the correction

After the dramatic jump to $2,925, platinum fell 35.7% within six trading days to $1,882, then recovered nearly 20% in one day, and as of early February 2026, trades between $2,000 and $2,100. This extreme volatility is primarily caused by illiquidity.

Open interest in NYMEX platinum futures is only about 73,500 contracts (roughly $8.3 billion), significantly less than gold, which exceeds $200 billion. This low liquidity amplifies price swings and makes slippage and gap risks real concerns.

To buy platinum now or wait? A decision framework for different investor types

Short-term trading: The current volatility offers opportunities. Several technical signals point to potential setups. However, the illiquid market poses slippage surprises. Stop-loss discipline is essential – it’s a matter of survival.

Medium-term investment (3–6 months): This is tricky. On one hand, the structural supply shortage remains – South Africa will not suddenly produce more platinum in 2026. On the other hand, investors might take profits at higher prices, and demand could be weaker than expected. A 5–10% portfolio allocation might be sensible without taking on excessive risk.

Long-term investment (over 3 years): Here, platinum offers compelling arguments. Hydrogen demand could truly take off from 2028–2030. With structural supply issues in South Africa, platinum could become a winning precious metal – but patience is required.

Decision checklist before buying platinum:

• How much risk can I accept? (Platinum is 3–4x more volatile than gold)
• What is my time horizon? (Days, months, or years?)
• Which purchase form suits me? (Physical, ETF/ETC, CFD, futures, stocks)
• How large should my portfolio share be? (Conservative: 2–5%, Moderate: 5–10%, Aggressive: 10–15%)
• Do I have an emergency plan for price drops? (Stop-loss, rebalancing)

Conclusion: Buying platinum makes sense – but with conditions

Yes, buying platinum in 2026 is sensible – but not for everyone and not without careful consideration. The renaissance of this white precious metal is based on real fundamentals: structural supply shortages, future industrial applications, and a revaluation after years of undervaluation compared to gold.

For active traders, platinum offers exciting opportunities through volatility. For conservative long-term investors, a portfolio inclusion as a hedge and hydrogen play makes sense. Short-term speculators should be prepared for turbulence.

The question “Is buying platinum worthwhile?” can be answered as: Yes, but with strategy, patience, and strict risk management. Those willing to accept these conditions and carefully structure their investment could benefit from the platinum renaissance.