Platinum’s price is showing strong signs of a surge in 2025, and the main reason behind this expected jump is a shortage in supply combined with growing demand. For several years now, platinum has been facing a supply deficit—meaning more platinum is being used than mined or recycled. This trend looks set to continue into 2025, tightening the market even further.
One key factor driving this shortage is reduced mining output, especially from South Africa, which produces the majority of the world’s platinum. Mining challenges and lower recycling rates have pushed total supply down to its lowest level in five years. At the same time, physical stockpiles of platinum are shrinking rapidly and could run out within a couple of years if current trends persist.
On the demand side, China has become an increasingly important player. Chinese investors are buying more platinum bars, coins, and jewelry as they look for alternatives to gold—which has become quite expensive recently. In fact, Chinese imports of platinum surged by nearly half in just one month during early 2025. This rising interest from China adds extra pressure on already tight supplies.
Another factor supporting higher prices is growing industrial use—especially for hybrid vehicles that require platinum for their catalytic converters to reduce emissions. As green technologies expand worldwide, demand from automotive manufacturers continues to rise steadily.
With these forces at work—a shrinking supply due to mining cuts and stockpile depletion alongside rising investment and industrial demand—the price of platinum could climb significantly throughout 2025. Some forecasts suggest it might even reach levels above $1,400 per ounce by mid-year or potentially much higher if shortages deepen further.
In short, limited availability combined with strong global appetite makes 2025 a year where we could see notable upward movement in platinum prices driven largely by real-world shortages rather than speculation alone.