Platinum has been on an interesting journey lately. After years of lagging behind gold and silver, its price has started to show signs of strength in 2025. Earlier this year, platinum surged nearly 40%, driven by a tightening market where demand is outpacing supply. This tightness is partly due to reduced mining output and steady industrial demand, especially from the automotive sector and emerging hydrogen fuel-cell technologies.
One key factor supporting platinum prices is the cost of mining itself. Mining an ounce of platinum now costs almost as much as the metal’s current market price. This situation tends to create a natural floor for prices because miners are unlikely to sell below their production cost for long periods without cutting back supply, which then helps stabilize or push prices higher.
In January 2025, platinum’s base price hovered around $900 per ounce—a level that many investors are watching closely. Given the ongoing supply constraints and growing industrial uses, some experts believe this $900 mark could become a new floor or baseline for platinum’s value moving forward.
Adding to this bullish outlook is increased investor interest reflected in rising holdings in platinum-backed ETFs and a surge in lease rates for physical metal—both signs that market participants expect tighter conditions ahead.
While short-term fluctuations will continue—as with any commodity—the combination of limited new mining supply, steady or growing demand from sectors like jewelry (especially in China), automotive catalysts, and clean energy technologies suggests that the $900 base seen earlier this year might indeed serve as a solid foundation beneath future price movements.
So rather than seeing $900 as just another number on the chart, it could represent a meaningful support level signaling renewed confidence in platinum’s role both as an industrial metal and an investment asset going forward.