Platinum’s price has been on a remarkable rise in 2025, hitting its highest level in a decade and climbing about 45% this year alone. This surge is driven by a combination of tightening supply and growing demand across several sectors.
One major factor behind the price jump is the supply deficit. Platinum mining and production have not kept pace with increasing consumption, creating scarcity that pushes prices higher. On the demand side, platinum is seeing renewed interest not just from investors but also from industries and consumers alike.
The automotive industry plays a crucial role here. Traditionally, platinum has been used extensively in catalytic converters for internal combustion engine vehicles to reduce harmful emissions. While electric vehicles (EVs) were expected to reduce platinum demand due to their lack of catalytic converters, automakers are now shifting focus back toward hybrid vehicles. Hybrids still use catalytic converters but require more platinum per vehicle because their engines operate differently—often at lower temperatures—which demands higher concentrations of the metal for effective emission control.
This pivot towards hybrids could significantly boost platinum consumption since these cars need more of it than conventional engines do. At the same time, strong jewelry demand continues to support prices globally, especially in markets like China where consumers are buying more despite rising costs.
Investor interest has also surged as exchange-traded funds (ETFs) focused on platinum have outperformed those tracking gold and silver this year. This reflects growing confidence that platinum’s unique industrial uses combined with limited supply will sustain its upward price momentum.
In summary, multiple forces are converging: constrained supply chains; increased industrial use driven by hybrid vehicle technology; robust jewelry sales; and heightened investor enthusiasm—all pointing toward potential further gains for platinum’s price as global demand grows rapidly beyond traditional expectations.