Platinum prices have been on a remarkable run in 2025, outpacing gold and silver with a nearly 49% rally so far this year. This surge has pushed platinum to its highest level in over a decade, reaching around $1,350 an ounce by mid-June. The metal’s strong performance is driven by several key factors that are expected to continue influencing its price into the third quarter of 2025.
One major reason for platinum’s rise is supply constraints. For the third consecutive year, platinum supplies have fallen short of demand. This shortage is partly due to geopolitical tensions, such as fears surrounding the ongoing conflict between Iran and Israel and concerns about potential U.S. involvement escalating the situation further. These uncertainties create worries about disruptions in supply chains that support platinum production.
Demand for platinum remains robust across various sectors. China continues to be a significant consumer, especially for jewelry and industrial uses like auto catalysts and hydrogen fuel cells—technologies gaining traction as clean energy solutions expand globally. Additionally, industries such as chemical manufacturing and glass production also rely on this precious metal.
Another factor supporting high prices is related to market mechanics: lease rates for platinum are elevated, which discourages refineries from producing more because it becomes costly to manufacture new metal when borrowing costs are high. As a result, demand outpaces supply while above-ground inventories remain tight.
Interestingly, while gold has traditionally been seen as the safe haven investment during times of uncertainty—rising nearly 29% this year—platinum’s stronger gains suggest investors might be shifting some focus away from gold due to what some call “gold fatigue.” The ratio comparing how many ounces of gold it takes to buy one ounce of platinum has dropped to its lowest point in three years, indicating growing confidence or interest in platinum relative to gold.
Looking ahead into Q3 2025 specifically, analysts expect these trends will persist with continued upward pressure on platinum prices amid ongoing supply challenges and steady industrial demand growth. Some forecasts even suggest that while gold may pause or take a break during this period after recent highs, platinum could maintain momentum or outperform again before potentially reaching even higher levels later in the year.
In summary (without summarizing), Q3 looks set for an interesting phase where tight supplies meet strong demand across multiple sectors alongside geopolitical risks—all combining to keep the spotlight firmly on rising platinum prices through mid-2025 and beyond.