Platinum has been on a strong upward path in 2025, sparking excitement among investors and market watchers. After starting the year just under $1,000 per ounce, platinum prices have surged more than 20%, reaching levels not seen in two years. This rally is largely driven by ongoing supply shortages and growing demand, especially from China and industries like hybrid vehicle manufacturing.
The supply side is tightening considerably. Mining output from key producers like South Africa has dropped, while recycling rates have also declined. This combination means less platinum is entering the market overall. Experts forecast that total supply will fall to its lowest point in five years during 2025. At the same time, above-ground stocks of platinum are shrinking rapidly—down about a quarter—leaving only a few months’ worth of global demand covered by existing reserves.
On the demand front, Chinese buyers are playing an increasingly important role. Imports of platinum into China jumped sharply early this year as investors sought alternatives to gold amid its high prices. The appetite for physical platinum bars, coins, and jewelry has surged alongside industrial uses tied to clean energy technologies.
Looking ahead into 2026 and beyond, many analysts expect this rally to continue rather than fade away quickly. Forecasts suggest that platinum could climb steadily through next year—from around $1,300 at the start of 2026 up toward $1,460 by year-end—representing roughly a 50% gain compared to current prices.
This optimistic outlook rests on several pillars: persistent supply deficits likely lasting multiple years; sustained strong demand from both investment buyers and industrial users; plus new mining projects expected to come online only gradually over time rather than flooding the market immediately.
In short, what we’re seeing now appears less like a short-term spike and more like part of a longer-term trend where tight supplies meet rising global interest in this versatile metal. If these conditions hold true through next year—and there’s little sign they won’t—the momentum behind platinum’s price rally looks set to carry well into 2026 with further upside potential still ahead for investors willing to watch closely over time.