Why Platinum May Catch Up to Gold in 2026—And How to Get Exposure

Core Insights - The financial world is currently focused on gold due to its record prices driven by geopolitical instability and central bank purchases, but platinum is emerging as a significant investment opportunity [3][4] - Platinum is trading around $2,100 per ounce and has seen substantial gains in the fourth quarter, yet it remains historically undervalued compared to gold, presenting a classic value proposition for investors [4][8] Valuation Dynamics - The Gold-to-Platinum Ratio, which indicates how many ounces of platinum are needed to purchase one ounce of gold, currently stands at approximately 1.4x, meaning gold is 1.4 times more expensive than platinum [6] - Historically, platinum traded at a premium to gold, often at a ratio of 1.2x, reflecting its geological rarity, as it is about 30 times rarer than gold [6] Investment Thesis - The investment thesis for platinum is based on the concept of mean reversion, suggesting that if the ratio normalizes back to 1:1, platinum prices would need to rise significantly, even if gold prices remain stable [7] - A persistent structural supply deficit and increasing demand from the green hydrogen economy are expected to exert upward pressure on platinum prices [8] Investment Vehicles - The abrdn Physical Platinum Shares ETF offers a liquid and transparent method for investors to gain exposure to physical platinum without logistical challenges [8]