While gold is often in the spotlight, it’s not the only precious metal out there that can diversify and add value to your portfolio.
One example is platinum. Thirty times rarer than gold, platinum stands out for its scarcity, industrial significance, and potential investment value.
In fact, platinum prices spiked nearly 50 percent in 2025. The spot price of platinum today is around $1,700 per Troy ounce. This could make it more accessible than gold, which trades at around $4,200 per Troy ounce.
But it’s important to understand platinum, as well as its benefits and risks, before deciding to invest.
So let’s take a closer look.
What Is Platinum?
Platinum is a silver-white metal known for its resistance to corrosion and high melting point.
This precious metal is part of the platinum group metals (PGMs), which includes palladium, and it’s essential to the automotive and renewable energy industries. Platinum is critical in the construction of catalytic converters, which are designed to reduce vehicle emissions from diesel and gasoline engines.
It also serves as a catalyst for hydrogen fuel cells, a key component in green energy technology, including electric vehicles (EV)s.
Moreover, demand for platinum and other PGMs is growing throughout the artificial intelligence (AI) industry.
The CME Group stated in a June 2026 report, “It is too soon to quantify global PGM demand growth potential from AI, but WPIC data indicates that platinum demand growth is already in evidence from areas such as silicone and fiberglass production, semiconductor fabrication, and hard disk drives for data storage.”
Platinum is also widely used in jewelry.
While a movement toward EVs may reduce demand for platinum in the use of catalytic converter production, its importance to overall renewable energy and AI may help platinum remain resilient.
Additionally, its scarcity could also boost its potential value growth. Demand for platinum in recent years has often outweighed what mines can produce. In fact, 2025 saw the third straight year of shortages.
But as with any investment, platinum comes with some key risks.
Risks of Investing in Platinum
Geopolitical risk is a major factor when it comes to investing in platinum. South Africa produces most of the globe’s platinum, with the remaining bulk picked up by Russia and Zimbabwe, according to TheGlobalEconomy.com. This can leave platinum open to threats like sanctions, war, and geopolitical turmoil within these regions.
With production being so heavily concentrated, even seemingly minor issues like labor disputes or power disruption at one particular mine can send prices swinging wildly.
Platinum derives much of its value from its industrial use, which can put its price at the mercy of economic cycles tied to automotive, green energy, and other industries. In fact, about 40 percent of platinum demand comes from the automotive sector alone, according to CME, so prices can spike when gasoline-powered auto manufacturing increases. But the reverse can happen, too. This is why platinum is sometimes referred to as a workhorse metal.
Unlike gold, platinum is not really used as a store of value, currency, or safe-haven asset.
Plus, the market for platinum is exceptionally small compared to other precious metals like gold and silver. Platinum is highly illiquid, so it may be difficult to turn it into cash when you feel the time is right.
But that’s not to say platinum can’t hold a place in your portfolio. Platinum can potentially deliver strong returns for the right investor with the right risk tolerance.
If you’re interested in going platinum, there are a few ways to give your portfolio exposure to this precious metal.
Platinum ETFs
Some exchange-traded funds (ETFs) track the price of platinum, and some of these funds buy and hold physical platinum bars in highly secured vaults to match share value. But it’s also important to note that some ETFs that invest in platinum also invest in other precious metals, such as palladium.
You can buy most platinum ETFs through a typical brokerage account.
This can give you exposure to the platinum market while allowing you to bypass the costs and efforts associated with buying and storing physical metal.
Here are some popular platinum ETFs.
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abrdn Physical Platinum Shares ETF (PPLT)
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GraniteShares Platinum Trust (PLTM)
As with any ETF, however, it’s important to evaluate its characteristics before you invest. Pay attention to key numbers like their expense ratios and assets under management.
Physical Metal
If you want a tangible asset, you can purchase platinum bars and coins through a reputable dealer. Popular coins include the American Platinum Eagle and the Canadian Platinum Maple Leaf, as well as coins from the Royal Mint.
But it’s important to shop around for platinum. Remember, you’re likely not going to pay the spot price for your platinum. Dealers need to make a profit, so you’d be purchasing physical metal at a premium. Its relation to the spot price would vary across dealers.
Platinum IRA
You can also open a self-directed individual retirement account (SDIRA).
An SDIRA is a type of account that can invest in precious metals like platinum. Here’s how it typically works.
You find a custodian that specializes in precious metals IRAs. They would help you open and fund your SDIRA. You then work with a platinum dealer to select the metals for your SDIRA. Sometimes, your custodian might connect you with one.
It’s crucial that the platinum going into your SDIRA meets IRS purity standards. Platinum held in IRAs must meet a minimum purity of 99.95 percent.
Then, you must find an IRS-approved depository that will hold the platinum tied to your IRA. The government won’t permit you to personally store the platinum in your SDIRA. Your custodian may also connect you to IRS-approved depositories.
The Bottom Line
Platinum is an extremely rare precious metal with major industrial uses, especially in the automotive and green energy segments of the economy. You can access it by purchasing physical metal, opening a platinum IRA, or by investing in platinum ETFs. But platinum is known for being extremely volatile. With that can come greater rewards, however. Nonetheless, platinum is generally a speculative investment for the investor with a high risk tolerance. Before you decide to invest in platinum, you should consult a qualified financial and tax adviser.
The Epoch Times copyright © 2026. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
