Global supply deficits are playing a major role in shaping the future of platinum, pushing it into a tighter market with significant implications for prices and demand. The core issue is that platinum mining output is shrinking. In 2025, mine supply is expected to decline by about 6%, with production in the first quarter dropping sharply due to disruptions like power outages in South Africa—the country responsible for nearly 80% of global platinum mining. This makes increasing supply extremely difficult because platinum is much rarer than gold; all the platinum ever mined would barely fill an Olympic-sized swimming pool to ankle depth.
This scarcity creates a natural ceiling on how much new platinum can enter the market, supporting higher prices over time. Recycling used to help ease shortages but has recently fallen to its lowest level in over a decade and isn’t expected to bounce back significantly this year.
On the demand side, automotive catalytic converters remain the largest consumer of platinum, accounting for half of total usage. While demand dipped slightly last year due to economic factors like high interest rates, it’s forecasted to rebound as automakers increasingly adopt hybrid vehicles that rely more heavily on platinum-based converters rather than palladium ones used in battery electric vehicles. This shift not only boosts demand but also encourages manufacturers to substitute palladium with cheaper and more efficient platinum where possible.
Other sectors show mixed signals: jewelry accounts for about a quarter of consumption but faces challenges from weak Chinese demand; industrial uses such as glassmaking have seen dramatic declines recently.
Overall, these persistent supply constraints combined with evolving automotive trends suggest that **platinum’s future will be shaped by tight availability and growing strategic importance**, likely driving prices upward as investors and industries adjust their expectations around this rare metal’s role in technology and manufacturing.