Platinum jewelry has experienced a remarkable resurgence in demand, contributing significantly to the metal’s overall market performance in 2025. This year has been particularly notable for platinum, with its price surging nearly 80 percent, outpacing both gold and silver in the precious metals rally[1]. Several factors have contributed to this increase, including a deep structural supply deficit and resurgent industrial and investment demand[1]. However, the role of platinum jewelry in driving this demand back to record highs is especially noteworthy.
### Historical Context of Platinum Jewelry Demand
Historically, platinum jewelry has been a significant component of the metal’s demand. It is valued for its durability and aesthetic appeal, often used in high-end jewelry pieces. However, in recent years, platinum’s popularity in jewelry had waned somewhat due to its higher cost compared to other metals like gold and silver. This trend began to reverse in 2025 as platinum’s price relative to gold became more favorable, making it an attractive option for consumers seeking luxury jewelry at a lower cost[1].
### Current Demand Trends
In the first half of 2025, platinum jewelry demand reached its highest level since the first half of 2015, with 1,201 kilograms (koz) of platinum used in jewelry[2][3]. This growth continued into the second quarter, where demand increased by 32 percent year-over-year to 668 koz[2][3]. For the full year 2025, jewelry demand is expected to rise by 11 percent to 2,226 koz, marking the highest global total since 2018[2][3].
### Regional Demand Variations
The growth in platinum jewelry demand is not uniform across all regions. China is experiencing particularly strong growth, with demand expected to increase by 42 percent year-over-year to 585 koz[2][3]. Japan is also seeing a healthy increase of 5 percent, while European and North American demand is forecast to grow by 7 percent and 8 percent, respectively, reaching record highs[2][3]. However, India’s demand is expected to soften by 10 percent due to reduced exports amid US tariff uncertainty[2][3].
### Supply Constraints and Investment Demand
While jewelry demand is a significant factor, platinum’s overall market dynamics are also influenced by supply constraints and investment demand. The metal’s supply is highly concentrated, primarily coming from South Africa, Russia, and Zimbabwe[4]. This limited supply, combined with ongoing supply deficits, supports higher prices and attracts investors seeking safe-haven assets[5].
### Investment and Bar/coin Demand
In addition to jewelry, investment demand for platinum, particularly in the form of bars and coins, has seen significant growth. In the second quarter of 2025, China’s bar and coin demand surged, with total demand reaching 109 koz, up 55 percent quarter-over-quarter[2]. However, this growth was somewhat offset by outflows from exchange-held stocks, resulting in a net outflow of 64 koz in investment demand during the quarter[2].
### Emerging Demand in Hydrogen Technology
Platinum is also gaining traction in emerging technologies, particularly in the hydrogen sector. Demand for platinum in hydrogen applications is expected to reach 49,000 ounces by 2025, an increase of more than 8,000 ounces from the previous year[7]. This growing demand in industrial applications further supports the metal’s price and overall demand.
### Conclusion of Platinum’s Market Performance
Platinum’s remarkable comeback in 2025 is multifaceted, driven by a combination of factors including jewelry demand, supply constraints, investment interest, and emerging industrial uses. As the metal continues to attract attention for its value proposition in both luxury goods and industrial applications, its market performance is likely to remain robust. The ongoing supply deficits and the metal’s historical undervaluation relative to gold and silver position platinum for sustained growth in the coming years.