Platinum Supply Crisis Explained for Beginners
Platinum is a shiny, rare metal used in cars, jewelry, and many everyday products. Right now, in 2025, there is not enough platinum to meet demand, creating a supply crisis. This shortage has pushed prices to a 17-year high, more than doubling since the start of the year.https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.htmlhttps://fortune.com/article/current-price-of-platinum-12-18-2025/
The main problem is a big gap between supply and demand. Experts forecast a deficit of 692,000 ounces in 2025, which is about 9 percent of the year’s total demand.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Total supply will drop 2 percent from last year to around 7.1 million ounces. Mining output, the biggest source, falls 5 percent because companies cannot keep drawing from extra stockpiles like they did in 2024. This will be the lowest mine supply since 2014, outside of the COVID year in 2020.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
South Africa produces most of the world’s platinum, but mines there face disruptions from labor issues, power problems, and other challenges.https://fortune.com/article/current-price-of-platinum-12-18-2025/https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.html Russia, another key supplier, saw its output drop 9 percent due to lower ore from its top producer Nornickel. Sanctions, equipment shortages, and transport issues make it harder for them to keep up.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Demand is down a bit overall, by 5 percent, mainly because fewer glass factories are expanding. But other areas stay strong. Cars use platinum in exhaust systems to clean pollution. Jewelry and investments also pull in more metal. Factories that make chemicals, glass, and lab tools need it too.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.html
Trade tensions add to the squeeze. The US, Europe, and China compete for limited platinum. Banks store extra metal in US warehouses to avoid possible tariffs. Over 600,000 ounces sit there, more than usual. In China, a new futures market draws traders, pushing prices higher. Borrowing platinum costs 14 percent a month in London, a sign no one wants to lend it out.https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.htmlhttps://nai500.com/blog/2025/11/platinum-prices-hit-15-year-high-what-are-the-driving-forces/
Investors pile in too, seeing platinum as a cheaper option next to rising gold prices. This rush helps drive the 77 percent gain since January.https://fortune.com/article/current-price-of-platinum-12-18-2025/ High borrow rates hurt factories that lease metal, so some may buy instead, tightening supply more.https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.html
Recycling helps a little, up 7 percent, but not enough to close the gap. Experts see industrial demand picking up 9 percent in 2026, with a small surplus possible if trade eases. But tensions could mean another deficit year.https:/