Platinum is catching a lot of attention lately, and for good reason. After years of lagging behind other precious metals, it’s now on the rise, reaching its highest levels in a decade. The big question many are asking is whether platinum’s supply shortage could push its price above $1,500 per ounce in 2026.
The heart of this story lies in supply and demand. South Africa produces about 70% of the world’s platinum, but it’s facing serious challenges that are squeezing supply tight. Power outages have become more frequent, cutting production by around 6% this year alone. On top of that, labor strikes and rising costs—up about 15% annually—are making mining more expensive and difficult. Mines themselves are running out of easy-to-reach platinum as reserves dwindle with few new discoveries to replace them.
This shrinking supply means there isn’t enough platinum to meet global demand. Experts forecast a deficit close to one million ounces this year—a gap expected to widen even further over the next few years.
Demand is also shifting in ways that favor platinum prices rising sharply. China’s appetite for the metal is growing fast as it pushes forward with green technologies like hydrogen fuel cells where platinum plays a key role as a catalyst. This emerging “hydrogen economy” could be a game-changer for long-term demand.
Meanwhile, geopolitical tensions worldwide add another layer to why investors might see platinum as a safe haven asset—something valuable to hold when markets get shaky or uncertain interest rate moves happen from central banks.
All these factors combined suggest we may not just see prices nudging past $1,500 but potentially heading toward much higher levels by 2028 if current trends continue unchecked.
In short: limited new supplies from major producers struggling with operational issues plus rising industrial use driven by clean energy tech create strong upward pressure on prices — making $1,500 an ounce look like just the beginning rather than an end point for platinum’s rally next year and beyond.