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While gold and silver have been making headlines with soaring prices, platinum has quietly surged to an 18-year high as investors bet on precious metals to hedge against falling currencies.
Platinum, a key precious metal, ruled at $1,975 an ounce in the global market at 1320 hours IST. In the futures market, platinum due for delivery in January was trading at $1,986 per ounce.
In China’s Guangzhou futures exchange, platinum surged to 541.80 Chinese yuan a kg on Thursday. Trading in the precious metal began on November 27 at the exchange. Then, it ruled at 405 Chinese yuan.
Open interest in the Guangzhou futures exchange increased by 17 per cent on Thursday for all running contracts to 35,964 from 30,716 on Wednesday, an indication that the market is bullish on the precious metal’s prospects.
More than double in 2025
Platinum, which is used in catalyst converters in automobiles to reduce emissions, as well as in the chemical, refining, glass manufacturing, and electronics sectors, has gained nearly 115 per cent this year. This is more than the 65 per cent rise in gold but lower than the 130 per cent rise in silver rates.
N Anantha Padmanaban, Chairman of Chennai-based NAC Jewellers, told businessline that platinum’s prices are currently ruling at ₹6,000-6,200 a gm in Chennai.
“Prices have more than doubled this year, particularly with the depreciation of the rupee. Response to platinum has been good since gold prices have soared,” he said.
The Trading Economics website said rising economic and policy uncertainty in the US drove investors toward alternative assets offering higher returns and diversification.
Finding new life
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, says that platinum is closely tied to industrial demand, particularly in catalytic converters, and is now finding new life in the hydrogen economy and green energy transition.
“Supply challenges in South Africa and Russia further tighten the market,” said Sheth. Several mines in South Africa, which make up 70-75 per cent of global supply, have reported lower production. Output in Russia has been hit by the geopolitical crisis.
The World Platinum Investment Council forecast a supply deficit this year at 69,200 ounces, a shortfall for a third year in a row. However, the market is expected to see a surplus of 20,000 ounces in 2026.
US multinational financial services firm Morgan Stanley said a small palladium market deficit is likely in 2026. However, the long-term “fundamentals” of the metal are weak.
Contrarian opportunity
The platinum-to-gold ratio, which had slid to 0.27, which means only a quarter ounce of gold can be obtained from an ounce of platinum, is now attempting to break out of the channel, said Sheth.
“If successful, the next resistance lies near 0.49, and eventually, a retest of 1.0 cannot be ruled out over the long term,” said the SAMCO Securities official.
Though gold may be the ultimate haven asset, platinum offers a contrarian opportunity as it is “undervalued, unloved, and potentially on the cusp of revival,” said Sheth, adding that, relative to silver, platinum looks deeply undervalued and may be poised for a catch-up rally.
Published on December 18, 2025
