Platinum is experiencing a notable surge in demand as interest in gold begins to wane. This shift is driven by several key factors reshaping the precious metals market in 2025.
First, platinum’s supply situation is tightening significantly. The market has been running a structural deficit for several years now, meaning that demand consistently outpaces supply. In 2025 alone, the platinum deficit is expected to be around 848,000 ounces, marking the third consecutive year of undersupply. Mining output has declined—especially from major producers like South Africa—and recycling rates have dropped too. As a result, total available platinum is shrinking and above-ground stocks are falling sharply, down about 25% this year to levels representing less than four months of global demand.
On the other side of the equation, demand for platinum remains robust and even shows signs of growing stronger in some areas. One standout driver comes from China where imports surged dramatically—by nearly half compared to previous months—as investors there increasingly turn to platinum bars, coins, and jewelry as alternatives amid high gold prices. Chinese consumers are drawn by platinum’s relative value and its appeal as a white metal with industrial uses.
Investment interest globally also reflects this trend away from gold fatigue—a sense that gold prices have become stretched or less attractive after years of gains—and toward metals like platinum that offer fresh upside potential. Platinum exchange-traded funds (ETFs) and institutional holdings have risen sharply this year as investors seek exposure to what many see as an undervalued metal with strong fundamentals.
Industrial demand adds another layer supporting platinum prices: it plays a crucial role in catalytic converters for hybrid vehicles—a sector growing rapidly due to environmental regulations worldwide—which further tightens supply-demand balances.
All these factors combined have pushed platinum prices up by more than 40% so far this year alone. Analysts predict these conditions will persist through at least 2029 with ongoing deficits keeping upward pressure on price levels.
In essence, while gold may be losing some shine among investors tired of its long rally and high valuations, platinum is stepping into the spotlight fueled by constrained supplies and rising global appetite—particularly from China’s expanding middle class looking beyond traditional safe havens toward new opportunities within precious metals markets.