Platinum has been making notable gains in 2025, with prices climbing steadily and reaching new highs. This surge is largely driven by a combination of supply shortages and rising demand, especially from China. The market is experiencing its third consecutive year of supply deficits, which means there isn’t enough platinum being mined or recycled to meet global demand. Mining output in South Africa—the world’s largest producer—has declined, and recycling rates have dropped as well. As a result, the total platinum supply for 2025 is expected to fall to its lowest level in five years.
At the same time, Chinese investors are buying more platinum than usual. In April 2025 alone, imports jumped by nearly half compared to the previous month. This increased appetite comes from people purchasing platinum bars, coins, and jewelry as they look for alternatives to gold amid its high prices.
Price forecasts suggest that platinum could continue climbing through the rest of 2025. Analysts expect it might reach around $1,400 per ounce by mid-year and possibly hit $1,500 by mid-2026 if current trends hold true. The price has shown resilience near key support levels around $1,225 per ounce recently and appears poised for further gains if it can break above resistance near $1,333.
However strong these fundamentals are right now—tight supplies combined with growing demand—the question remains whether platinum can maintain these gains through year-end. Markets can be unpredictable; any changes in mining output or shifts in investor sentiment could affect prices significantly.
Still, given the ongoing structural deficits and robust Chinese interest fueling this rally so far in 2025, there’s reason to believe that platinum’s upward momentum may persist at least until the end of the year unless unexpected events disrupt this balance between supply and demand.