Platinum prices have been on an interesting journey lately, and the coming months look set to be just as eventful. After a strong start in 2025, with prices climbing over 20% year-to-date and reaching around $1,096 per ounce by late May, platinum is catching the eye of investors and industry watchers alike.
One key factor driving this rally is a persistent supply deficit. For the third year running, there simply isn’t enough platinum being produced to meet demand. Mining output has dropped, especially in South Africa—the world’s largest producer—and recycling rates have also fallen. This means less metal is flowing into the market overall. Experts forecast that total supply will shrink by about 4%, hitting its lowest point in five years.
At the same time, demand from China has surged dramatically. Chinese imports of platinum bars, coins, and jewelry jumped nearly 50% in April compared to March alone. This spike reflects investors looking for alternatives as gold prices remain high and volatile. Additionally, growing use of platinum in hybrid vehicle manufacturing adds another layer of steady demand.
Looking ahead through 2025 and beyond into 2026-2030 periods, forecasts suggest that platinum could continue its upward trajectory quite strongly—potentially reaching $1,400 to $1,500 per ounce by mid-2025 or mid-2026 according to some long-term projections. Over several years after that horizon (up to around 2035), prices might even double or more compared to today’s levels if current trends hold.
However, it’s not all straightforward bullish momentum; market volatility remains a factor with price ranges tightening recently despite increased trading volumes on futures markets like NYMEX. This suggests traders are waiting for clearer signals before pushing prices decisively higher or lower.
In summary: watch closely how supply deficits evolve alongside Chinese buying patterns—these two forces seem central right now—and keep an eye on broader economic shifts affecting industrial use and investment appetite for this precious metal over coming months and years. The stage appears set for potential significant moves but expect some twists along the way too as markets digest these complex dynamics around platinum pricing going forward.