Platinum is catching a lot of attention in 2025 as a precious metal that might be the best buy right now. Several factors are coming together to make platinum stand out compared to gold and other metals.
First, there’s a big supply problem. For the third year in a row, platinum is facing a shortage. Mining output, especially from South Africa which produces most of the world’s platinum, has been dropping. Recycling rates have also fallen, meaning less old platinum is being put back into circulation. This has caused physical stockpiles to shrink sharply—experts expect them to fall by about 25% this year alone and could run out within two years if trends continue.
On the demand side, China is playing an important role. Chinese investors are buying more platinum bars, coins, and jewelry as they look for alternatives because gold prices have been high and less attractive recently. In April 2025 alone, Chinese imports jumped nearly 50% compared to March—the highest monthly level in over a year.
This combination of shrinking supply and rising demand has pushed platinum prices up more than 20% so far this year. Prices hit around $1,100 per ounce by late May 2025—a two-year high—and some forecasts suggest it could climb even higher during the year.
Looking ahead beyond just this year, experts predict that platinum could reach $1,400 by mid-2025 and possibly $1,500 by mid-2026 if current trends hold true. Over the next five years or so, some forecasts see prices doubling or even tripling from today’s levels due to ongoing supply deficits combined with growing industrial use—especially for hybrid vehicle manufacturing where platinum plays an essential role.
Compared with gold—which often gets all the spotlight—platinum currently offers unique opportunities because its market dynamics are different: it faces real shortages while demand grows strongly in key regions like China; meanwhile gold remains expensive but doesn’t have quite as tight supply constraints right now.
For investors looking at precious metals in 2025 without complicated jargon or hype: Platinum stands out as one of the most compelling buys thanks to its tightening market fundamentals and rising global interest driven largely by industrial needs plus strong investor appetite from places like China.
If you want exposure beyond traditional choices like gold or silver this year—and can handle some price swings—platinum deserves serious consideration given how its story is unfolding on both supply shortages and surging demand fronts across multiple sectors worldwide.