How to Invest in Platinum ETFs from India

In the precious metal category, gold and silver often take the spotlight. But one less-discussed metal, platinum, is quietly becoming one of the most talked-about precious metals. In 2025, platinum rallied more than 130%, outshining both gold and silver by a wide margin. 

Platinum 10-Year Price Chart

Source: Trading Economics

Platinum is both a precious metal and an industrial commodity. In recent years, automobiles and industrial applications are driving its demand, resulting in a strong price rally. If you are looking to gain exposure to the metal class, Platinum ETFs offer one way to do so without buying and storing physical platinum. 

For Indian investors looking to gain exposure to platinum prices, US-listed Platinum ETFs offer one route to access the metal without buying physical platinum. In this guide, we will understand how platinum ETFs work, why the investment case around platinum is strengthening, and the risks you should weigh before investing in platinum ETFs. 

What are Platinum ETFs?

Platinum exchange-traded funds (ETFs) are investment vehicles that tracks the price of platinum, either by holding physical platinum metal or by using platinum futures contracts. The units of platinum ETFs are traded on stock exchanges during market hours, just like any stock. 

Physically backed platinum ETFs are the most common structure. The fund purchases and holds the platinum bars in a secure vault. This is the most direct way of getting exposure to the price of platinum.

Platinum ETFs in India

There are currently no platinum ETFs listed on Indian stock exchanges such as the NSE or BSE. You can invest in platinum ETFs from India through US-listed platinum ETFs. You can invest in them through global investing platforms such as Vested Finance. 

List of Platinum ETFs Available on Vested

abrdn Physical Platinum Shares ETF (PPLT): This ETF is managed by abrdn Investments and invests in physical platinum bullion bars that are stored in a secure vault in the UK. 

GraniteShares Platinum Trust (PLTM): The ETF only invests in 100% pure platinum bars that are stored in a vault domiciled in London, UK. They are designed to seek the performance of the price of platinum, less the fund’s expenses. 

Why the Investment Case for Platinum is Growing

The rise of platinum prices is due to a combination of factors, such as tight supply, strong industrial demand, and rising investment demand. Unlike gold and silver, platinum is not a store-of-value metal. The primary demand comes from automotive and industrial applications. 

Strong Demand Dynamics

During the period between 2021 and 2025, automotive demand alone accounted for 36-44%, and industrial demand accounted for 23-25% of the total platinum demand. 

Platinum is a key metal that is used in engine exhaust systems to reduce vehicle emissions. In fuel cell electric vehicles, platinum is used as a superior catalytic and conductive metal to help convert hydrogen to electricity to power the vehicle. Also, there are multiple applications of platinum in industries such as fertilizers and medical equipment. 

Source: World Platinum Investment Council

Structural Supply Deficit

There is a structural supply deficit of platinum against the rising demand. The World Platinum Investment Council (WPIC) expects the platinum market to remain in deficit in 2026, with demand exceeding supply by 297,000 ounces. This follows a much larger 1.08 million-ounce deficit in 2025. As per the council report, this supply deficit will continue over the coming years. 

The size of the projected annual supply deficit is expected to average around 331,000 ounces between 2026 and 2030.

Undervaluation Relative to Gold

Platinum has historically traded at a premium to gold. In 2008, platinum prices briefly crossed $2,200 an ounce, more than twice the price of gold at the time. However, the relationship reversed after the global financial crisis. Gold benefited because of its safe-haven status, while platinum’s close link to industrial and automotive demand affected its price. Analysts expect the premium gap between gold and platinum could narrow from here. 

How are Platinum ETFs Taxed in India? 

For an Indian resident, gains from investments in foreign securities, including foreign-listed platinum ETFs, are taxed as per the Income Tax Act, 2025. The tax rate depends on the holding period of the securities. 

Holding period is more than 24 months: Foreign securities held for more than 24 months are considered long-term capital gains (LTCG). The gains arising from selling the security attract a tax rate of 12.5%. 

Holding period is less than 24 months: If the holding period is less than 24 months, the gains are short-term capital gains (STCG). The gains are added to your total income and taxed as per your income slab rate. 

One important key in tax filing is that if you are holding foreign listed securities, they must be disclosed in Schedule FA while filing your income tax return. Non-disclosure of foreign assets above ₹20 lakh can attract a penalty of up to ₹10 lakh.

If you’re also managing US stock or RSU holdings alongside platinum ETFs, see our related guides on ITR filing mistakes US stock investors should avoid.

What are the Risks of Investing in Platinum ETFs? 

Platinum ETFs are not free from downside risks. Before investing in them, consider these risks:

Commodity Price Volatility: Platinum has shown sharp price swings in the past. Rapid rallies can be followed by equally rapid pullbacks. 

High Correlation with Economic Cycles: A significant portion of platinum demand comes from automotive and industrial applications, making it sensitive to economic and rate cycles. If there is a change in vehicle technology, including the shift towards battery electric vehicles, it can affect future demand. 

Supply concentration: Platinum production is concentrated in a few countries, particularly South Africa. Supply disruptions can therefore have a large impact on the market. 

No Dividend Yield: A physically backed platinum ETF is designed to track platinum prices. It is not an income-generating asset like a dividend-paying stock or bond. 

Platinum ETFs as a Portfolio Diversifier 

Platinum is gaining attention as supply remains tight and demand comes from several sectors, including automobiles, jewellery and industry. Historically, it has also traded at a premium to gold, although this relationship has changed over time.

For investors looking to diversify beyond stocks and bonds, platinum ETFs offer an easy way to get exposure to platinum without buying and storing the physical metal.

However, platinum is a volatile metal and doesn’t generate regular income. Therefore, it should be included as a small part of