Platinum’s price is poised for a significant leap, mainly driven by rising industrial demand and persistent supply shortages. Several factors are converging to create a tight market that could push prices higher in the near future.
One key reason is the ongoing structural deficit in platinum supply. For several years now, platinum production has not kept pace with demand. In 2025 alone, the global market faces an estimated deficit of around 700,000 to 850,000 ounces. This means more platinum is being used than mined or recycled each year. Mining output has declined recently due to challenges in major producing countries like South Africa, while recycling rates have also dropped. As a result, available stocks of platinum above ground are shrinking rapidly—down about 25% this year—leaving less than four months’ worth of global demand in reserve[1][5].
Industrial use remains one of the biggest drivers behind this tightening supply-demand balance. The automotive sector especially plays a crucial role because platinum is essential for catalytic converters that reduce harmful emissions from internal combustion engines. Despite growing sales of electric vehicles (EVs), which require little or no platinum, many consumers still prefer hybrids or traditional gasoline cars due to concerns about EV range and costs as well as infrastructure limitations.
Interestingly, recent policy shifts—such as reduced incentives for EV purchases in some regions—are pushing buyers back toward internal combustion engine vehicles that need more platinum for emission controls. This trend is expected to boost automotive-related demand for platinum to an eight-year high level this year[3].
Beyond cars, industrial demand includes emerging green technologies where platinum’s unique properties are vital—for example, hydrogen fuel production and other clean energy applications. Although overall industrial use might see some short-term fluctuations (a slight decline projected this year), it remains above its long-term average and holds strong potential for growth as these new technologies expand[3].
Another factor supporting higher prices is increased investment interest in platinum itself. Historically overshadowed by gold and silver among investors, recent price momentum has sparked renewed attention toward this precious metal as an undervalued asset class[3]. Additionally, Chinese investors have been buying large amounts of physical platinum bars and jewelry lately—a surge reflected by record import volumes earlier this year—which adds further upward pressure on prices[5].
In summary: shrinking supplies combined with robust industrial needs—from traditional auto catalysts to cutting-edge green tech—and growing investor appetite create a perfect storm that could send platinum prices soaring soon.
This dynamic makes it clear why many analysts believe we may be at—or approaching—a tipping point where rising industrial demand drives significant gains in the value of this rare metal over the coming years.