Platinum has been on a remarkable journey lately, with its price surging over 20% in 2025 alone. This significant increase is largely driven by persistent supply deficits and a notable rise in demand, particularly from China. The World Platinum Investment Council forecasts a substantial market deficit for this year, marking the third consecutive year of undersupply. This situation is exacerbated by reduced mining output in South Africa and lower recycling rates, which have led to a decline in total platinum supply.
The demand side of the equation is equally compelling. Chinese investors have been increasingly drawn to platinum, viewing it as an attractive alternative to gold. This is evident in the surge of platinum imports into China, which reached a year-high in April 2025. The appeal of platinum is not limited to investors; it is also crucial for the production of hybrid vehicles, further boosting demand.
Despite these positive trends, the question remains whether platinum has more room to run. Long-term forecasts suggest that platinum prices could continue to rise, potentially reaching $1,400 by mid-2025 and $1,500 by mid-2026. However, these projections are based on current market conditions and the assumption that supply deficits will persist.
The platinum market is highly sensitive to changes in supply and demand dynamics. If mining output increases or recycling rates improve, the supply deficit could narrow, potentially dampening price growth. Conversely, if demand from China and other sectors continues to grow, platinum prices could continue their upward trajectory.
In the broader context, platinum’s performance is closely watched by investors seeking diversification in the precious metals market. Its unique industrial applications and growing appeal as a store of value make it an interesting alternative to gold and silver. As the market continues to evolve, platinum’s potential for further growth will depend on how these factors interplay over the coming months and years.