Platinum is shaping up to be one of the most sought-after metals in 2025, and for good reasons. Its scarcity combined with rising demand is pushing it into the spotlight as a top investment pick this year.
First, platinum’s supply is tightening dramatically. About 75% of the world’s platinum comes from South Africa and Zimbabwe, regions currently facing serious challenges like electricity shortages, labor strikes, and regulatory hurdles that are limiting mining output. In fact, production has dropped to a 20-year low in South Africa. Recycling can only make up about a quarter of supply because platinum tends to stay locked in products like catalytic converters for many years before it can be recovered. As a result, experts forecast a significant deficit—nearly one million ounces short—in 2025 alone. Above-ground stockpiles are shrinking fast too; they could run out within just two years if current trends continue.
On the demand side, several powerful forces are driving interest higher than ever before. Automakers need more platinum to meet new environmental rules coming into effect soon (Euro 7 regulations), which require better control of harmful emissions from vehicles. This means catalytic converters will use more platinum than before—pushing automotive demand to an eight-year high this year.
Beyond cars, emerging markets like China are shifting consumer preferences away from gold toward more affordable yet precious metals such as platinum jewelry—China’s imports jumped by half compared to last year alone.
Perhaps most excitingly for long-term growth is platinum’s role in green energy technologies. It plays an essential part in fuel cells used for producing clean hydrogen—a key player in future sustainable energy solutions—with expected demand reaching millions of ounces annually by 2030.
All these factors together create what some call a “perfect storm” favoring platinum: limited supply that won’t easily increase plus growing industrial and investment appetite worldwide. Prices have already surged significantly this year outpacing gold gains at times as investors look beyond traditional safe havens toward metals with strong fundamentals and future potential.
For anyone considering where to put their money or looking at materials critical for tomorrow’s technologies and environmental goals, platinum stands out clearly due to its unique combination of rarity and rising necessity across multiple sectors heading into 2025 and beyond.