Platinum is up over 38% year-to-date – surging 20% within a single week. It is currently outperforming gold, silver, palladium, the Dow Jones, the S&P 500 and the NASDAQ — and it is still almost half of its all-time high.
Platinum prices are rising due to an array of price triggers including higher industrial and investment demand, increasing geopolitical tensions and a dramatic surge in Chinese jewelry demand.
“In the first quarter, platinum jewelry demand grew by 50% year-over-year in China, according to Platinum Guild International data cited by World Platinum Investment Council. The growth is double what was previously reported and has been attributed to gold becoming too expensive for buyers. With high gold prices, Chinese ‘wholesalers are beginning to look more favourably on platinum. A number are reportedly increasing stock in showrooms throughout the country,’ according to a report from precious metal refiner Heraeus on May 26.”1 https://www.barrons.com/articles/gold-price-silver-platinum-china-8a58282a
China also needs platinum to fuel its growing manufacturing base, rising industrial applications, use of chemical catalysts, and its push for green energy and hydrogen technologies — specifically its role as a vital component in fuel cells. But the biggest price driver of platinum in 2025 is its critical supply shortage.
Platinum’s Deepening Supply Deficit
Platinum is currently in a supply crisis due to its inherent rarity, mining challenges, reduced recycling volume, and rising demand across multiple industries including investment, automotive, and jewelry fabrication.
Key highlights of the World Platinum Investment Council’s report for Q1 2025 includes an analysis of supply and demand metrics with the following critical data points:
- Forecast platinum market deficit deepens to 966 koz; third successive year of market deficit
- Forecast total supply in 2025 is the lowest in five years, declining by 4% to 6,999 koz
- Resurgence in China platinum jewelry demand drives a forecast 5% increase in global jewelry demand this year
- Automotive demand resilient despite market uncertainty; forecast 2% reduction to 3,052 koz for full year 2025
- Robust investment demand continues, forecast at 688 koz in 2025, bolstered by strong bar and coin demand in China
- Above ground stocks to fall to 2,160 koz in 2025, representing only three months of demand cover2https://platinuminvestment.com/supply-and-demand/platinum-quarterly
South African mining accounts for over 70% of world platinum supply and contends with a host of challenges including job cuts, rising labor costs, electrical grid instability, water shortages, and ongoing geopolitical issues.
Overall mining production in the “rainbow nation” decreased in the fourth quarter of last year and 2025 looks to continue that trend. Data from the Statistics South Africa showed that the mining industry slumped by 2.4% in December following a 0.9% decrease in November with platinum and gold contributing heavily to declines.3https://thepost.co.za/business-report/economy/2025-02-13-mining-productivity-in-south-africa-under-threat-as-local-challenges-weigh-heavy
In addition, above-ground or mined platinum supplies are rapidly dwindling
“Above-ground platinum stocks are drawing down sharply. Current levels now fall below four months of demand coverage. This shortfall underscores the tightening market, with investors attuned to the fact that platinum deficit worsens, increasing investment demand may precipitate more aggressive price adjustments.”4https://discoveryalert.com.au/news/platinum-deficit-2025-investment-opportunities
Platinum’s Perfect Price Storm
In 2025, platinum is a rising precious metals star, and the outlook for the metal is bullish particularly with gold setting 28 new price records in this year. Gold’s historically high price per ounce has opened the door for other metals like platinum to surge.
Platinum is not only rarer than gold — it is harder to mine, has more industrial uses, and tends to be far more expensive than the yellow metal. And its tight supply, rebounding demand, and renewed investment interest are clearly giving it a moment.
“The platinum price extended its rally for a sixth straight session on Monday, climbing to its highest level in over four years amid signs of growing market tightness … Platinum is primarily used in catalytic converters for vehicles, as well as in laboratory equipment and as an investment asset. Its 32% price increase year-to-date has outpaced gold’s 26% rise.5https://www.mining.com/platinum-price-surges-to-highest-since-2021-as-market-tightens
undervalued since its current price is well below its historical average in relation to gold. In addition, its scarcity looms large and its production and supply constraints are not going to improve anytime soon.
Platinum’s Revenge
While platinum has struggled for ‘precious metals relevance’ in recent years, all that has now changed. This highly dense, durable, and hypoallergenic metal has always been held in high esteem for its strength, luster, and reflectivity. Now, it’s price is rising due to structural changes in the market and its inherent qualities:
“Popular culture often highlights gold as the most desirable metal. So, you might think that would make it a greater rarity compared to platinum. But actually, platinum is around 30 times rarer than gold … Approximately 190 metric tons of platinum are mined worldwide annually, compared to the 3,300 metric tons of gold. Platinum doesn’t have the same history as gold. However, it serves a variety of uses, partially due to its structure. It is highly dense but also very malleable, giving it value in industrial settings. So, you find it in the medical field, auto industry, aircraft industry, jewelry and other sectors.”6https://smartasset.com/investing/platinum-vs-gold-investment
Recent headlines reflect precisely how bullish the outlook for platinum has become and its strength in the current investment environment.
The Globe & Mail – “Move over Gold! Investors are now piling into platinum amid continued macroeconomic and trade uncertainty.”7https://www.theglobeandmail.com/investing/markets/markets-news/Yolowire/32807835/platinum-gains-15-on-the-year-and-outpaces-gold
Barron’s – “The long wait may be over” for platinum investors as “the fundamentals are finally getting reflected in the price.”8https://www.barrons.com/articles/platinum-price-gold-adde2e2f
Bloomberg – “Platinum extended its surge as the market for the precious metal strains under signs of severe tightness.”9https://www.bloomberg.com/news/articles/2025-06-09/gold-steadies-after-two-day-loss-ahead-of-us-china-trade-talks
The Wall Street Journal – “The platinum market is likely to post a third year of deficits in 2025, as supply is stretched … Investment demand is expected to remain high at 606,000 ounces.”10 https://www.wsj.com/finance/commodities-futures/platinum-market-set-for-third-year-of-major-deficits-1facf51b?
Seeking Alpha – “The massive market exposure that Costco is giving retail investors to buy platinum bars for investment and as a hedge is going to expand the market for platinum and help it push toward new highs.”11https://seekingalpha.com/article/4793436-platinum-breakout-could-get-white-hot-vs-gold-and-silver
Don’t miss the platinum window. If this metal returns to its all-time highs, it could deliver up to an 80% return!
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1 https://www.barrons.com/articles/gold-price-silver-platinum-china-8a58282a
2 https://platinuminvestment.com/supply-and-demand/platinum-quarterly
4 https://discoveryalert.com.au/news/platinum-deficit-2025-investment-opportunities
5 https://www.mining.com/platinum-price-surges-to-highest-since-2021-as-market-tightens
6 https://smartasset.com/investing/platinum-vs-gold-investment
8 https://www.barrons.com/articles/platinum-price-gold-adde2e2f
11 https://seekingalpha.com/article/4793436-platinum-breakout-could-get-white-hot-vs-gold-and-silver
