Platinum is weird. Honestly, it’s the "forgotten" sibling of the precious metals family. Everyone talks about gold’s safe-haven status or silver’s meme-stock energy, but platinum just sits there, quietly essential for everything from your car's exhaust to high-end watches. If you’ve been looking at the abrdn Physical Platinum Shares ETF (PPLT) lately, you’ve probably noticed something wild. In 2025, while the S&P 500 was doing its usual thing, platinum went on an absolute tear, crushing gold’s performance with a one-year return that cleared 150%.
But here is the thing: most people treat PPLT like a "gold lite" investment. It isn't. Not even close.
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Investing in the abrdn Physical Platinum Shares ETF (PPLT) isn't just a bet on a shiny metal. It is a bet on global supply chains, South African power grids, and the future of hydrogen. If you’re holding shares or thinking about it, you need to know what’s actually happening inside those vaults in London.
The Physical Reality of PPLT
The biggest misconception about PPLT is that it’s some kind of "paper" contract. It’s not. PPLT is a grantor trust. Basically, when you buy a share, you’re buying a tiny slice of an actual physical bar of platinum. These bars are stored in secure vaults in London, specifically at JPMorgan Chase.
There are no derivatives here. No futures contracts to roll over. No "contango" eating your gains.
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Every single day, abrdn (the issuer, formerly Standard Life Aberdeen) publishes a "bar list." It’s a literal PDF of every single platinum bar held by the trust, complete with serial numbers and weights. It’s about as transparent as it gets in the finance world. The expense ratio is 0.60%. Is that high? Compared to a gold ETF like IAU (0.25%), yeah, it’s pricey. But compared to the cost of you buying a 1-ounce bar, paying a dealer markup, and then paying a monthly fee to keep it in a safe? PPLT is a bargain.
Why the 2025 Spike Matters for 2026
Look at the numbers from this past year. PPLT hit a 52-week high of $225.71, starting from a low of around $82.79. That kind of volatility is enough to give a conservative investor a heart attack. Why did it happen?
- Supply Deficits: For three years, the world used more platinum than it mined.
- South African Grid Failure: About 70% of the world's platinum comes from South Africa. When their power grid (Eskom) struggles, the mines stop. When the mines stop, PPLT goes up.
- The China Factor: Surging Chinese investment demand caught everyone off guard in late 2025.
As of January 2026, the World Platinum Investment Council (WPIC) is projecting a bit of a "rebalancing" year. They’re looking at a tiny surplus of maybe 20,000 ounces, but—and this is a big "but"—that assumes people start selling their PPLT shares to take profits. If investors hold tight, the deficit stays, and the price pressure remains.
The "Industrial" Trap
You've probably heard that platinum is an "industrial metal." That’s true. It’s the primary catalyst in diesel engines to scrub out emissions. For a few years, everyone thought the "EV revolution" would kill platinum.
Guess what? It didn't.
Hybrid cars are booming, and they still need catalytic converters. More importantly, we’re seeing a massive pivot toward the "Hydrogen Economy." Platinum is the go-to metal for PEM (Proton Exchange Membrane) electrolyzers. These machines use electricity to split water into hydrogen. If hydrogen takes off for heavy trucking and shipping in 2026 and 2027, the demand for what's inside PPLT could go from steady to insane.
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Risks Nobody Mentions
Let’s be real for a second. PPLT isn't all sunshine and 150% gains. There are some specific "gotchas" you need to be aware of:
- The Tax Bite: Because the IRS treats PPLT as a "collectible," your long-term capital gains tax rate isn't the usual 15% or 20%. It’s capped at 28%. That’s a huge chunk of your profit gone if you don't plan for it.
- Liquidity vs. Size: PPLT is the big dog in the space with over $2.8 billion in assets, but its daily volume is much lower than gold ETFs. If you're trying to move $10 million in a single trade, you might move the market price.
- The "Other" ETF: There’s a cheaper version called PLTM (GraniteShares Platinum Trust) with a 0.50% fee. It’s smaller, but if you’re a penny-pincher, you’ll want to check it out. However, PPLT’s liquidity is usually worth the extra 0.10% for most traders.
How to Actually Play PPLT in 2026
If you’re looking at your portfolio right now and wondering if you missed the boat, take a breath. Platinum is still historically undervalued compared to gold. For most of history, platinum was more expensive than gold. Right now, gold is still leading by a wide margin.
Many experts, including Edward Sterck at WPIC, are watching "above-ground stocks." These are the reserves held by exchanges and vaults. They are depleting. Fast.
Actionable Next Steps for Investors:
- Check your "Precious Metals" allocation. If you’re 100% gold, you’re missing out on a metal with way more industrial upside. A 10% to 15% swap from gold to PPLT is a common move for diversification.
- Watch the "Lease Rates." If you see London platinum lease rates staying high (in backwardation), it means the physical market is tight. That’s a "buy" signal for PPLT.
- Prepare for a 28% tax rate. If you’re holding this in a taxable brokerage account, just know the IRS is going to want a bigger slice than they do for your Apple stock. Holding it in a Roth IRA is a pro move to avoid that "collectible" tax entirely.
- Set a trailing stop-loss. After the massive run-up in 2025, a 10% or 15% correction wouldn't be weird. Don't let a "rebalancing" year turn your gains into losses.
Platinum is no longer just the "rich man's gold." It's a strategic resource. Whether the world goes green or stays with internal combustion, the abrdn Physical Platinum Shares ETF (PPLT) is the most direct way to own the metal without having to hide a heavy bar under your mattress.