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Platinum is a precious metal with significant industrial demand, a long history as a monetary and jewellery metal, and a price that has traded at a substantial discount to gold since 2014. For UK investors, it sits in an awkward middle ground - less established as an investment vehicle than gold or silver, but with a structural demand story around the energy transition that some analysts find compelling.
This guide covers what platinum is, how UK investors can buy it, what the tax position is, and how it compares to gold and silver as an investment.
At a glance
| Platinum | Gold | Silver | |
|---|---|---|---|
| VAT on purchase (UK) | 20% | 0% | 20% |
| CGT-free coins available | No | Yes (Sovereigns, Britannias) | Yes (Silver Britannia only) |
| Primary use | Industrial (50–60%) | Investment / jewellery | Industrial (50–60%) |
| Annual mine supply | ~180 tonnes | ~3,600 tonnes | ~25,000 tonnes |
| Price relative to gold | Deep discount (2025) | Reference | Below gold |
| Price volatility | High | Moderate | High |
What is platinum?
Platinum is a dense, silvery-white metal in the platinum group metals (PGMs) family, alongside palladium, rhodium, iridium, osmium, and ruthenium. It is rarer than gold by annual mining output and geographically concentrated - around 70–75% of global platinum supply comes from South Africa, with Russia and Zimbabwe producing most of the rest.
Historically, platinum traded at a substantial premium to gold. From the 1980s to 2011, platinum was often $500–$1,000 above gold per ounce. This relationship inverted after 2014 and has remained inverted: as of early 2026, platinum trades at roughly 40–45% of the gold price - around $950–1,000/oz versus gold at approximately $2,900/oz.
Industrial demand: why it matters
Unlike gold (where investment demand dominates), platinum’s primary use is industrial. Automotive catalytic converters account for roughly 40–45% of platinum demand - platinum catalysts are used in diesel exhaust systems to reduce harmful emissions.
Automotive demand has been both a driver and a vulnerability - the ongoing European diesel decline has weighed on the outlook. Platinum does have emerging demand on the other side, though:
- Hydrogen fuel cells: Platinum is the primary catalyst in proton exchange membrane fuel cells used in hydrogen vehicles and stationary power
- Green hydrogen production: Platinum is used in electrolysers for hydrogen production
- Electronics and glass manufacturing
The hydrogen demand thesis is real but not yet large enough to replace declining automotive demand in the near term.
How to buy platinum in the UK
Physical platinum bars and coins
UK dealers (including Baird & Co, Chards, BullionByPost, and Atkinsons) sell physical platinum in bar and coin form. Common products:
| Product | Approx price (March 2026) | Notes |
|---|---|---|
| 1oz platinum bar (PAMP, Baird) | ~£850 | Most common denomination |
| 100g platinum bar | ~£2,750 | |
| 1oz Platinum Britannia | ~£900–950 | Royal Mint coin, legal tender |
| 1oz Platinum Eagle (US) | ~£1,000+ | Higher premium |
VAT note: Unlike gold, platinum attracts 20% VAT on physical purchase. A 1oz bar at £850 costs £1,020 including VAT. This means platinum needs to appreciate roughly 20% before you break even in GBP terms after VAT.
Platinum ETCs
Physically-backed platinum ETCs are available to UK investors through standard dealing accounts and ISAs:
- WisdomTree Physical Platinum (PHPT) - largest UK-listed platinum ETC
- Invesco Physical Platinum (SPLT)
- iShares Physical Platinum (IPLT)
These track the platinum spot price, don’t attract VAT (as financial instruments, not physical metal), and can be held in a Stocks and Shares ISA for tax-free gains.
Tax position
VAT: Physical platinum attracts 20% VAT on purchase. This is a significant upfront cost. Platinum ETCs held as financial instruments do not attract VAT.
CGT: There are no CGT-exempt platinum coins for UK investors. The Platinum Britannia is technically UK legal tender (£100 face value) and therefore should in principle carry the same CGT exemption as the Gold Sovereign and Britannia. However, HMRC guidance on this specific point is not explicit and advice on Platinum Britannia CGT status varies. Clarification from HMRC or specialist tax advice is recommended before relying on a CGT exemption for platinum coins.
Gold bars and most foreign coins are subject to CGT; platinum bars are similarly subject to CGT.
ISA: Platinum ETCs held in an ISA grow and can be withdrawn tax-free.
Platinum vs gold: the core comparison
| Platinum | Gold | |
|---|---|---|
| VAT | 20% | 0% |
| CGT-free option | Unclear (Pt Britannia) | Yes (Sovereigns, Britannias) |
| Investment market depth | Thin | Deep |
| Liquidity | Lower | High |
| Price history | Volatile, largely sideways | Long-term up |
| Industrial demand risk | High (diesel decline) | Low |
| New demand catalyst | Hydrogen (early stage) | Central bank buying |
How people usually decide
Most UK precious metals investors who consider platinum fall into two camps.
The first sees the current platinum-to-gold price ratio as a compelling value argument - platinum has historically traded above gold and could recover that premium. This is a contrarian, potentially long-horizon view.
The second notes the 20% VAT penalty, the limited CGT-free options, and the thin retail market and concludes the friction costs are too high for a small position to be worthwhile.
For investors who do want platinum exposure, the ETC route (no VAT, potential ISA wrapping) is more practical than physical bars for most amounts. For comparison, see gold Sovereigns and Britannias - the only precious metal coins with clear CGT-free status in the UK.
Frequently asked questions
Why is platinum cheaper than gold? Platinum was above gold for most of the period from 1987 to 2014. The divergence since then reflects the diesel emissions scandal (2015 Volkswagen, and broader diesel decline), weaker autocatalyst demand growth, and gold’s surge driven by central bank buying and investment demand. The two prices simply tracked different demand stories.
Do I pay VAT on platinum in the UK? Yes - 20% on physical platinum. Unlike gold (which has a specific VAT exemption under the Gold Scheme), platinum does not qualify as investment gold under UK VAT law. Platinum ETCs held as financial instruments do not attract VAT.
Is the Platinum Britannia CGT-exempt? Uncertain. The Royal Mint Platinum Britannia is denominated as £100 face value UK legal tender, which would in principle trigger the same TCGA 1992 exemption as gold coins. However, HMRC has not issued explicit guidance, and some advisers are cautious about relying on this exemption without a formal ruling. Seek specific tax advice.
Is platinum in a SIPP possible? HMRC’s investment gold rules for SIPPs apply specifically to gold. Platinum would not typically qualify under standard SIPP rules for physical precious metals. A SSAS may offer more flexibility, but specialist advice is required.