Platinum has been on a notable rally recently, and much of this surge is tied to geopolitical risks that are shaking up its supply and demand dynamics. The metal’s price climbed to around $1,348 per ounce in early June 2025, driven by several intertwined factors linked to global political tensions and disruptions.
One of the biggest influences comes from South Africa, which produces about 70% of the world’s platinum. The country is grappling with ongoing labor strikes and severe energy shortages due to problems with Eskom, its main power supplier. These issues have pushed platinum output down to levels not seen in two decades. At the same time, policy uncertainties—such as the looming expiration of trade benefits under AGOA (African Growth and Opportunity Act)—add further pressure on production stability.
Russia also plays a significant role as the second-largest platinum producer but faces its own challenges due to international sanctions and failed mining projects in Africa like Zimbabwe’s Darwendale mine. Zimbabwe itself has seen a drop in production by about 13% in early 2025 along with export levies that make it more expensive for miners to sell raw platinum abroad. Disruptions at major furnaces operated by companies like Zimplats compound these supply constraints.
All these geopolitical factors contribute heavily to what analysts call a “supply deficit”—meaning demand for platinum outstrips how much is available globally. For 2025 alone, forecasts suggest nearly a million ounces shortfall or roughly 22% less than needed worldwide.
On top of supply worries, demand for platinum remains strong especially from sectors linked to clean energy technologies such as hydrogen fuel cells where platinum acts as an essential catalyst. Jewelry demand has also rebounded strongly this year after some years of softness.
Interestingly, while gold traditionally shines brightest during times of geopolitical turmoil because it’s viewed purely as a safe haven asset, platinum shows something different—it behaves both like an industrial metal critical for green tech progress and like a crisis hedge when uncertainty spikes globally.
Investors watching this rally must consider how fragile these gains might be since they depend heavily on continued geopolitical instability alongside technical market factors and central bank policies influencing interest rates worldwide.
In essence, yes—the recent rally in platinum prices is closely linked with geopolitical risks disrupting key producing regions’ ability to keep up with growing global demand amid broader economic uncertainties affecting metals markets everywhere.