Platinum is on track to reach new price highs in 2025, and several key factors are driving this upward momentum. One of the main reasons is a persistent supply shortage that has now stretched into its third consecutive year. The World Platinum Investment Council forecasts a significant deficit of nearly one million ounces for 2025, meaning demand will outstrip supply by a wide margin once again.
This shortage stems largely from declining mining output, especially in South Africa—the world’s largest platinum producer—where production is expected to drop by about 4%. Recycling rates have also fallen, further tightening the available supply. As a result, total platinum availability could fall to its lowest level in five years. On top of that, above-ground stockpiles are shrinking rapidly and may decrease by as much as 25%, leaving less than four months’ worth of global demand covered by existing reserves.
On the demand side, China is playing an increasingly important role. Chinese investors have been snapping up platinum bars, coins, and jewelry at record levels as they look for alternatives to gold amid its high prices. In April alone, Chinese imports surged nearly 50% compared to the previous month—the highest monthly volume seen in over a year. This growing appetite from China adds strong upward pressure on prices.
Additionally, industrial use continues to support platinum’s value. The metal is crucial for manufacturing catalytic converters used in hybrid vehicles—a sector expanding rapidly due to environmental regulations worldwide aiming at reducing emissions.
All these elements combined create an environment where platinum prices are poised not just for steady gains but potentially dramatic increases throughout 2025 and beyond. Some forecasts suggest prices could climb well above $1,400 per ounce mid-year and even approach $4,000 within the next decade if current trends persist.
In essence: shrinking supplies meet rising global demand—especially from China—and industrial growth sectors like clean transportation—all pushing platinum toward new highs unseen before this year or even soon after it ends.