Platinum has been grabbing attention in 2025 as its price climbs steadily, sparking talk about whether $1,500 per ounce could be the next milestone. Several factors are driving this upward momentum, making platinum one of the most interesting metals to watch right now.
First off, supply is tightening. For three years running, platinum has faced a supply deficit—meaning demand outpaces what’s mined and recycled. This year alone, experts expect a shortfall close to 850,000 ounces. Mining output is down mainly because South Africa—the world’s biggest producer—is producing less platinum than before. At the same time, recycling rates have dropped too. As a result, above-ground stockpiles of platinum are shrinking fast and could fall below levels that cover just a few months of global demand.
On the flip side of this tight supply picture is growing demand from China. Chinese investors and consumers have been snapping up more platinum bars, coins, and jewelry as an alternative to gold—which has become quite expensive lately. In April 2025 alone, China imported about 10 metric tons of platinum—a big jump compared to previous months—and sales of platinum jewelry in China rose significantly while gold jewelry sales declined.
This combination—shrinking supplies with rising Chinese appetite—is pushing prices higher at a rapid pace. Platinum prices have already surged over 20% so far this year and recently hit their highest level since mid-2023 at around $1,100 per ounce.
Looking ahead into late 2025 and beyond into 2026, forecasts suggest that prices could continue climbing toward $1,400 by mid-2025 and potentially reach or exceed $1,500 by mid-2026 if current trends hold steady or intensify.
Some analysts even see room for much higher gains over the longer term due to ongoing structural deficits in supply combined with increasing industrial use—especially in hybrid vehicle manufacturing where platinum plays an important role—and sustained investment interest worldwide.
However strong these signals may be for price growth though there remains some caution among experts because market volatility can always return if unexpected events disrupt mining operations or investor sentiment shifts suddenly.
Still it feels like we’re nearing a point where the market will start reflecting these underlying shortages more clearly through price action — making $1,500 not just wishful thinking but an achievable target within the next year or two if current patterns persist.
In short: Platinum’s story today is one of tightening supplies meeting surging demand from key markets like China — creating conditions ripe for further price gains that might well push it past that $1,500 mark on its way up over time.