Insights 
VT 
Platinum’s price has surged over 80% this year, marking its strongest annual gain in 38 years. The peak was in October at over $1,730 per troy ounce, nearing the highest point since February 2013. This rise is largely due to its undervaluation compared to Gold and a tight market situation.
Earlier, Platinum’s price lagged behind Gold, with the price ratio reaching nearly 3.6 in April. This made Gold over three times pricier than Platinum, leading to increased interest in the latter as a cheaper alternative. The Gold/Platinum ratio has since stabilized around 2.5, with the price difference exceeding $2,500 per troy ounce, which is much higher than at the year’s start while Platinum still lags Gold overall.
Supply and Demand Dynamics
For the third straight year, the Platinum market is expected to be undersupplied. The World Platinum Investment Council forecasts a lower supply deficit than previously anticipated. Next year might see a slight supply surplus with demand expected to drop by 5.6%, while supply rises by under 4%.
The upside potential for Platinum is expected to be limited. The market is projected to be less tight, and the influence of Gold’s price may lessen. Supply deficits have reduced inventories significantly, with a stock-to-use ratio over 40%. Prices may align with Gold, reaching $1,800 per troy ounce by 2026, resulting in a 2.4 price ratio.
With platinum having rallied over 80% in 2025, we are now testing the year’s high of around $1,730 per troy ounce. This marks the highest price point we’ve seen since February 2013, creating a critical moment for the market. The strong momentum is undeniable, but fundamental shifts are suggesting a change in direction is possible.
The core reasons for the massive price gain this year have been platinum’s deep discount to gold and a significant supply deficit. However, the outlook for 2026 is pointing towards a market surplus for the first time in three years as demand is expected to fall. This suggests the fundamental tailwinds that pushed prices to current levels are beginning to fade.
Market Strategies and Outlook
Looking at recent market data from late November 2025, we see that speculative net-long positions in the futures market have stopped increasing, signaling that bullish conviction may be waning. Furthermore, major platinum-backed ETFs, such as the Aberdeen Standard Physical Platinum Shares ETF (PPLT), have registered modest outflows in the past two weeks. This indicates some early investors are securing profits near these highs.
For derivative traders, the elevated implied volatility resulting from the year’s sharp price climb makes selling options an attractive strategy. Those who believe the rally is overextended could consider selling out-of-the-money call options or implementing bear call spreads. These positions would profit if the price of platinum consolidates or pulls back from its current highs in the coming weeks.
The Gold/Platinum ratio, a key catalyst for the rally when it peaked at 3.6 earlier in 2025, has since stabilized around 2.5. We should no longer expect this ratio to be a major driver of upside for platinum in the short term. Traders should watch this ratio for stability, as a significant move in either gold or platinum could signal the next directional move.
With the forecast shifting from a supply deficit to a surplus, the upside potential appears limited from here. While inventories are low enough to provide a floor and prevent a price crash, chasing the rally at these levels is risky. We should be preparing for a period of consolidation, using derivative strategies to protect against a potential pullback from these multi-year highs.
