All That Glitters Is Not Gold…Sometimes it’s Platinum?
Author: John Kratochwil
June 12, 2025
Platinum has recently captured market attention with a notable price breakout, definitively pushing above US$1,100 per ounce, after spending much of this decade rangebound between US$850-$1,100 per ounce.
A primary catalyst for this shift in platinum’s fortunes lies in the evolving landscape of the automotive industry. For years, the anticipated dominance of electric vehicles (EVs) cast a long shadow over platinum demand, given that approximately one-third to nearly half of its use is in catalytic converters for internal combustion engines. However, a significant pivot is underway. Auto original equipment manufacturers (OEMs) are now re-evaluating and scaling back ambitious EV targets, instead placing a renewed emphasis on hybrid engines.
This may be a considerable boon for platinum, not only because hybrids still incorporate catalytic converters, but critically, these vehicles demand more platinum per unit. The start-stop technology and extended battery-only operation in hybrids mean their catalytic converters often run at lower temperatures, requiring a higher concentration of platinum to maintain optimal efficiency.
Beyond the automotive sector, robust jewelry demand is providing substantial support to platinum’s price. Historically, a price increase might dampen jewelry sales, but in the current environment, particularly in key markets like China, demand remains strong.
A significant factor here is the compelling price disparity between platinum and gold. With platinum currently trading at approximately one-third the price of gold, a substantial gap exists, making platinum jewelry an attractive alternative. This stark difference suggests that jewelry demand is not only supportive of the current breakout but has the potential to further bolster the demand side of the equation.
Adding another layer to this positive narrative is the recent upward trend in the platinum-to-gold ratio. This ratio, which had seen a prolonged decline partly fueled by the “platinum is dead” narrative linked to EV expectations, is now signaling a change in investor sentiment.
The recent movement of platinum outpacing gold suggests that investors are increasingly looking for value beyond traditional safe havens and may be diversifying into platinum as a store of value.
In summary, platinum’s recent price surge is underpinned by several powerful forces. These include a turn to positive net long positions among traders, a fundamental shift in the auto industry towards hybrid vehicles, sustained strong jewelry demand driven by an attractive price differential with gold, and a notable re-evaluation of platinum’s investment appeal relative to gold. Collectively, these factors suggest a robust and potentially lasting upward trajectory for the metal.
The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds, or investment strategies.
Commentary and data sourced from Bloomberg, Reuters and other news sources unless otherwise noted. The commentaries contained herein are provided as a general source of information based on information available as of June 10, 2025. It is not intended to address the needs, circumstances, and objectives of any specific investor. The content of this commentary is not to be used or construed as investment advice, as an offer to buy or sell any securities, and is not intended to suggest taking or refraining from any course of action. Every effort has been made to ensure accuracy in these commentaries at the time of publication, however, accuracy cannot be guaranteed. Market conditions may change and AGF Investments Inc. accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained herein.
This document may contain forward-looking information that reflects our current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein.
For Canadian investors: Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFI is registered as a portfolio manager across Canadian securities commissions. AGFA and AGFUS are registered investment advisors with the U.S. Securities Exchange Commission. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.
AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm, individuals and/or product is registered or authorized to provide such services.
Investment advisory services for U.S. persons are provided by AGFA and AGFUS. In connection with providing services to certain U.S. clients, AGF Investments LLC uses the resources of AGF Investments Inc. acting in its capacity as AGF Investments LLC’s “participating affiliate”, in accordance with applicable guidance of the staff of the SEC. AGFA engages one or more affiliates and their personnel in the provision of services under written agreements (including dual employee) among AGFA and its affiliates and under which AGFA supervises the activities of affiliate personnel on behalf of its clients (“Affiliate Resource Arrangements”).
® ™ The “AGF” logo and all associated trademarks are registered trademarks or trademarks of AGF Management Limited and used under licence.
RO:20250611-4574793
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.
AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.
Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
For further information, please visit AGF.com.
© 2025 AGF Management Limited. All rights reserved.
Written by
John Kratochwil, MBA, P.Eng.
Senior Analyst
AGF Investments Inc.
