Chinese demand is playing a major role in pushing platinum prices higher this year. As gold jewelry sales in China have dropped sharply due to soaring gold prices, Chinese jewelers and consumers are turning to platinum as an attractive alternative. This shift is helping drive up global platinum prices significantly.
Gold has traditionally been the favored metal for jewelry in China, but with gold hitting record highs above $3,500 an ounce recently, many buyers have been priced out of the market. In fact, gold jewelry sales in China fell by nearly 30% compared to last year. Meanwhile, demand for physical gold bars and coins has risen as investors seek safe-haven assets.
Faced with falling gold jewelry sales, Chinese jewelers are increasingly using platinum instead because it costs about one-third as much as gold per ounce but still offers a precious metal appeal. Jewelry pricing in China is often based on weight rather than design complexity or brand name, making platinum’s lower price point very appealing.
This growing appetite for platinum has led to a surge in imports into China — April 2025 saw the highest monthly intake of over 11 metric tons of platinum in more than a year. This strong buying activity from Chinese consumers and fabricators has helped push global spot prices up around 40% so far this year.
The rise isn’t just about consumer demand; supply constraints also play a part. Mining disruptions and closures elsewhere have tightened available supply worldwide, amplifying price gains when combined with China’s increased imports.
Overall, China’s pivot from expensive gold toward more affordable yet prestigious metals like platinum is reshaping the market landscape and fueling one of the strongest rallies for this precious metal seen in years.