Platinum is trading around $1,289, and many investors are wondering if now is the right time to buy. To understand this, it helps to look at what’s happening in the platinum market.
First off, platinum has been facing a supply shortage for several years. In 2025 alone, newly mined platinum production is expected to drop by about 6%, reversing previous growth trends. This means less metal is coming out of the ground even as demand remains strong. The market has been running a deficit—where demand exceeds supply—for three years straight now. This ongoing shortfall has caused above-ground stocks of platinum to shrink dramatically; they could be down to just 2.5 million ounces by the end of this year, which is critically low compared to historical levels.
On the demand side, interest in platinum isn’t slowing down either. It’s used widely in automotive catalytic converters (especially for gasoline vehicles), jewelry—particularly growing in China—and various industrial applications. Even investment demand has picked up as some investors see platinum as an undervalued precious metal compared to gold and silver.
Looking ahead, forecasts suggest that these deficits will continue through at least 2029 with annual shortfalls averaging around 727 thousand ounces per year—about 9% of total demand annually. Prices have already responded by rising roughly one-third so far this year and are predicted by some analysts to reach $1,400 or even $1,500 within the next couple of years.
There are also no major new mines expected soon and recycling rates remain limited due partly to geographic challenges like South Africa’s dominant role in production facing operational issues.
All these factors combined point toward a tightening market where supply struggles to keep pace with steady or growing demand—a classic setup that often leads prices higher over time.
So when you see platinum priced near $1,289 today amid these persistent deficits and strong future outlooks from experts forecasting prices well above current levels within months or a couple of years—it suggests there could be an opportunity here for buyers who believe these trends will continue.
Of course, investing always carries risks including economic uncertainties globally that can affect metals markets unpredictably—but from a fundamental standpoint based on supply-demand dynamics alone—the case for buying platinum now looks compelling if you’re aiming for medium- or long-term gains rather than quick flips.