5 Ways to Invest in Platinum: A 2024-2025 Market Guide

Platinum has quietly become one of the most intriguing precious metals for investors. As the third most heavily traded precious metal globally (after gold and silver), it sits at a unique intersection of investment appeal and industrial demand. Whether you’re looking to diversify your portfolio or capitalize on emerging supply-demand dynamics, here’s everything you need to know about investing in platinum.

Why Platinum Deserves Your Attention

Unlike gold, which is primarily decorative and investment-focused, platinum serves dual purposes. The automotive industry relies on it for catalytic converters (40% of demand), while industrial applications span fertilizers, hard drives, electronics, and pharmaceuticals. The jewelry sector accounts for 25% of consumption, with investment demand growing at 5% annually.

The World Platinum Investment Council (WPIC) projects total platinum demand of 7.95 million ounces in 2024, with only a modest 1% decline expected for 2025. But here’s where it gets interesting: the market faces a third consecutive year of supply deficit in 2025—a 539,000 ounce shortfall. This supply squeeze could create significant upside potential.

The Supply-Demand Story

South Africa dominates platinum production with 67% of global output, particularly through the Bushveld Complex. However, electricity shortages and infrastructure disruptions have constrained supply. Meanwhile, increased recycling efforts (up 14%) are only partially offsetting the 2% decline in mined production. Russia, Zimbabwe, Canada, and the United States round out the top five producers.

On the demand side, the automotive sector is shifting. While electric vehicles initially threatened demand, the slowdown in EV adoption has buoyed platinum prices. WPIC forecasts 2% growth in automotive platinum demand for 2025—an eight-year high. Simultaneously, the hydrogen economy is emerging as a meaningful demand driver, growing from 0.4% of total demand in 2023 to 1% in 2024, with projections suggesting it could become the largest segment by 2040.

Direct Ownership: Platinum Stocks

For investors seeking direct exposure to platinum production:

Major Producers:

• Anglo American Platinum (AGPPF) operates three major mines in South Africa’s Bushveld Complex and is scheduled to list independently on the LSE in mid-2025
• Impala Platinum Holdings (IMPUF) ranks among the world’s most prominent platinum producers with operations across South Africa, Zimbabwe, and Canada
• Sibanye Stillwater (SBSW) combines platinum and palladium production with a newly integrated recycling business model
• Eastern Platinum (ELR) expects PGM revenue to represent at least 65% of total revenue by 2026
• Tharisa (TIHRF) integrates exploration through production with assets in South Africa and Zimbabwe

Exploration-Stage Opportunities: Junior miners like Bravo Mining (BRVO), Chalice Mining (CHN), Platinum Group Metals (PTM), and others are advancing projects with significant platinum potential in Brazil, Australia, Canada, and South Africa.

ETF Route: Simplicity Meets Diversification

Exchange-traded funds offer a lower-barrier entry point for platinum investing:

Physical Platinum ETFs track the spot price of platinum bullion held in secure vaults:

• Aberdeen Physical Platinum Shares ETF (PPLT) — 0.6% expense ratio
• GraniteShares Platinum Trust (PLTM) — 0.5% expense ratio, London-based vaults
• Global X Physical Platinum (ETPMPT) — 0.49% management fee, ideal for Australian investors

Mining Company ETF:

• iShares MSCI Global Metals & Mining Producers ETF (PICK) — 0.39% expense ratio, includes Implats, Anglo American, and Sibanye Stillwater

The Sprott Physical Platinum and Palladium Trust (SPPP) at 1.12% offers flexibility for those wanting combined exposure to both metals.

Physical Bullion: Tangible Assets

For those preferring to own physical platinum, several options now exist. BullionVault operates a 24/7 online market offering institutional-grade platinum access to individual investors. In the United States, Costco recently began selling 1-ounce platinum bars and coins—a significant milestone signaling mainstream adoption.

Physical ownership appeals to investors who distrust digital markets or seek ultimate asset control, though storage and insurance costs should factor into your decision.

Futures: Advanced Strategy for Sophisticated Traders

Platinum futures on the New York Mercantile Exchange (NYMEX) provide leverage-based exposure to price movements. Traders speculate on whether platinum will appreciate or depreciate within specific timeframes without taking physical delivery. However, this approach carries substantial risk and is unsuitable for novice investors. The leverage available in futures can amplify both gains and losses significantly.

The Investment Case for 2024-2025

The confluence of supply constraints, emerging hydrogen economy demand, continued automotive sector recovery, and investment inflows (7% growth projected for 2025) creates a compelling backdrop for platinum investing. WPIC’s data shows investment demand rebounding on the back of strong platinum ETF inflows and new product launches including Costco bars and Chinese platinum coins.

The choice between stocks, ETFs, physical bullion, or futures depends on your risk tolerance, investment horizon, and preference for active management. But one thing is clear: platinum’s supply deficit and expanding industrial applications suggest the metal remains undervalued relative to its long-term potential.

Whether you invest through major producers like Sibanye Stillwater or Impala Platinum, gain diversified exposure via mining ETFs, own physical bars, or trade futures, platinum deserves a place in conversations about precious metals diversification in 2024 and beyond.