Platinum is quietly gearing up for a major price surge, driven by a combination of shrinking supply and growing demand that looks set to continue for years. Unlike gold, which often steals the spotlight, platinum’s fundamentals reveal a market under real pressure that could push prices significantly higher.
The core issue is supply. Platinum production is expected to drop by about 6% in 2025, mainly due to challenges in key mining regions like South Africa. This decline reverses recent growth trends and means less new metal entering the market. Recycling efforts haven’t picked up enough to fill this gap either, so total platinum availability will fall below seven million ounces this year—a rare occurrence in recent times.
At the same time, demand for platinum remains strong across several fronts. The automotive industry continues to rely on it for catalytic converters despite some shifts toward electric vehicles. Jewelry demand from China is rising steadily as consumers seek luxury items made with this precious metal. Industrial uses also contribute consistently, while investment interest has been growing as investors look beyond gold and silver amid economic uncertainty.
These factors combine into what experts call a “structural deficit,” where annual consumption outpaces supply by significant margins—projected at nearly one million ounces or around 12% of global demand in 2025 alone. This persistent shortfall has already started eating into above-ground stocks of platinum worldwide and shows no sign of easing through at least 2029.
With inventories dwindling and no major new mines coming online soon, the balance between supply and demand looks increasingly tight. Investors are beginning to notice this imbalance too; net positive investment flows into platinum have been recorded for three consecutive years now.
All these elements suggest that platinum may be approaching a tipping point where prices could break out from their long-standing range and move sharply upward—potentially reaching levels around $1,200 per ounce or more if current trends persist.
In essence, behind the scenes of today’s markets lies an unfolding story: limited production growth combined with robust multi-sector demand creates conditions ripe for a significant upswing in platinum prices over the coming years.