Platinum is quietly making a strong case as the next big winner in metals investing. After years of being overshadowed by gold and silver, platinum is now showing signs of a powerful comeback driven by tight supply, rising demand, and its unique role in emerging technologies.
One key factor pushing platinum prices higher is a shrinking supply. Mining output is expected to drop significantly this year, especially from South Africa—the world’s largest producer—due to aging infrastructure and operational challenges. This reduction means less new platinum entering the market. At the same time, recycling rates are falling, further tightening availability. The result? A notable supply deficit that has persisted for three years straight and shows no sign of easing soon.
Demand for platinum remains robust across several fronts. Traditionally used in automotive catalytic converters to reduce emissions, platinum benefits from stricter environmental regulations like Europe’s upcoming Euro 7 standards that require more platinum per vehicle. Interestingly, while electric vehicles (EVs) slow their growth somewhat—reducing demand for some metals—the continued production of hybrid and internal combustion engine cars keeps automotive demand steady.
China plays an increasingly important role in driving up demand too. Chinese consumers are turning to platinum jewelry as a more affordable alternative to gold amid soaring gold prices. Investment interest there has surged with strong purchases of bars and coins adding fuel to the rally.
Beyond traditional uses, platinum’s future looks even brighter thanks to its critical part in clean energy technologies such as hydrogen fuel cells and electrolyzers used for green hydrogen production—a sector gaining momentum worldwide as governments push toward carbon neutrality goals.
All these factors combined have sent platinum prices soaring over 20% so far this year with forecasts suggesting they could reach $1,200 an ounce or more if current trends continue.
For investors looking beyond gold and silver’s usual spotlight, platinum offers a compelling story: limited supply meeting growing industrial use plus investment interest creates conditions ripe for price gains ahead. It may well be poised not just as an alternative precious metal but as a strategic asset tied closely to both environmental progress and shifting market dynamics within the metals space.