PPLT: Why Platinum Is Outshining Gold and Silver in 2025

In a year dominated by uncertainty in global markets, platinum has quietly emerged as the top-performing precious metal, outshining traditional safe havens like gold and silver. The abrdn Physical Platinum Shares ETF (PPLT) has delivered impressive returns in 2025, outperforming its more popular peers, the SPDR Gold Shares (GLD) and the iShares Silver Trust (SLV).

As of midday trading June 18, PPLT has risen more than 40% in 2025, while GLD and SLV have impressive but much lower gains at just under 30% each.

What’s driving platinum’s outperformance?  

A unique blend of industrial demand, supply constraints, long-term clean energy applications and attraction as a trading alternative to the higher-priced gold and silver has put platinum back on investors’ radars.  

In this article, we’ll break down how platinum compares to gold and silver, the pros and cons of investing in platinum ETFs like PPLT and what the long-term future may hold for this often-overlooked metal.

Platinum vs. Gold vs. Silver: Price, Industrial Use, Safe Haven Status

When investors think of precious metals, gold often gets top billing, especially during times of economic turmoil. Silver comes next, sometimes viewed as “poor man’s gold,” with broader industrial uses. But platinum sits in an interesting middle ground: valuable both for its precious metal properties and as a vital industrial input.

Furthermore, platinum is increasingly seen in 2025 as an attractive alternative to gold and silver, especially as both of those metals have recently reached elevated price levels.  

• Gold has hit all-time highs in 2025, fueled by persistent inflation fears, central bank buying and geopolitical stress.
• Silver is trading at 13-year highs, supported by industrial demand, particularly from solar energy and electronics.
• Platinum is trading at a four-year high as an industrial metal with investment appeal, but the metal is still just a little over half of its all-time high price set in 2008.

With these high prices, many investors believe gold and silver may be "overbought," or due for a pullback, prompting them to look for undervalued metals, and platinum fits the bill.

Gold

• Primary role: Store of value and inflation hedge
• Industrial demand: Minimal, as most demand is from jewelry and investing
• Main driver: Central bank reserves, jewelry, investor sentiment

Silver

• Primary role: Industrial metal with some monetary, precious metal appeal
• Industrial demand: Around 50% of total use, especially in solar panels, electronics
• Main driver: Green energy and tech innovation

Platinum

• Primary role: Primarily industrial but with investment appeal
• Industrial demand: Usage includes automotive catalysts, hydrogen tech, fuel cells and electronics
• Main driver: Demand from automakers, clean energy sectors and limited global supply

Bottom line: While gold and silver are often driven by investor emotion and macro sentiment, platinum’s price action reflects both economic growth and technological shifts, giving it a hybrid character that may appeal to both traders and long-term investors.

Pros and Cons of Investing in Platinum ETFs

ETFs like PPLT make it easy to gain exposure to physical platinum without the need to take physical delivery, worry about storage or directly trade futures contracts. But there are both advantages and limitations to consider.

Pros

• Pure exposure: PPLT is backed by allocated physical platinum, not derivatives.
• Accessibility: Traded like a stock, there’s no need for futures accounts or bullion dealers.
• Liquidity and transparency: ETFs have clear pricing and reasonable expense ratios.
• Portfolio diversification: ETFs offer exposure to a metal that, at times, behaves differently from gold and silver.

Cons

• Volatility: Platinum is more thinly traded and more volatile than gold and silver.
• Supply concentration: 70% of global platinum comes from South Africa, where political and labor risks are high.
• Lower investor demand: Platinum ETFs are smaller and less liquid than gold or silver ETFs.

Caution on Platinum, PPLT: Volatility Remains

While the long-term outlook is constructive, investors should expect short-term swings in platinum prices that can be more pronounced than those of gold and silver. Platinum is more sensitive to industrial production cycles and geopolitical headlines, which means ETFs like PPLT can spike or dip quickly.

While PPLT may not get the same attention as GLD or SLV, it’s proving in 2025 that platinum deserves a place in the spotlight. For investors looking to diversify their precious metals exposure, especially those betting on the future of clean energy and advanced manufacturing, platinum offers compelling upside.

Just remember: With greater potential comes greater price risk. Platinum may shine, but it doesn’t always glitter steadily.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in ETFs involves risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.

At the time of publication, Kent Thune did not hold a position in any of the aforementioned securities.