Early Warning Signs of a Platinum Shortage
Platinum is a shiny metal used in car parts, jewelry, and many industrial products. Right now, the world is facing a growing shortage of this valuable resource. Experts predict a big gap between supply and demand in 2025, with demand outpacing supply by 692 thousand ounces, or about 9 percent of yearly needs.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.newswire.ca/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-842565122.html This is the third year in a row of such shortages. Here are some clear early signs that a platinum shortage is building.
One key sign is falling mine production. South Africa supplies most of the world’s platinum, but output there dropped 5 percent in 2025 compared to the year before. Mines could not keep up after using up extra stockpiles from 2024. Total supply is down 2 percent to just over 7 million ounces for the year. This squeeze happened even as recycling rose a bit from old jewelry and parts.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.newswire.ca/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-842565122.htmlhttps://fortune.com/article/current-price-of-platinum-12-17-2025/
Another warning is vanishing stockpiles. Extra reserves above ground, which act like a safety buffer, have been used up over three years of deficits. By mid-2025, these stocks hit very low levels, making the market feel tight. Places like London are short on physical metal, and buyers in the US and China are pulling it away for their own needs.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Rising prices are a strong signal too. Platinum jumped more than 77 percent since early 2025, hitting over $1,900 per ounce by mid-December. This surge started in June and kept climbing, much like during the 2008 crisis when supply issues drove values high. Investors see it as a cheaper alternative to gold and a shield against inflation.https://fortune.com/article/current-price-of-platinum-12-17-2025/
Market tightness shows up in trading patterns. The London market is in backwardation, meaning near-term prices are higher than future ones, a classic sign of immediate shortages. Lease rates, or the cost to borrow platinum, are extremely high despite price gains. Even exchange-traded funds saw more buying than selling this year.https://www.newswire.ca/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-842565122.htmlhttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Demand stays firm in key areas. Car makers need more platinum for engines, with use 10 percent above the recent average. Jewelry sales grew 7 percent, especially in China, and investment bars and coins surged 47 percent, again led by Chinese buyers.https://www.newswire.ca/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-842565122.html
These signs point to a market under real pressure. Experts from the World Platinum Investment Council note that without changes like easing trade tensions, shortages could continue into 2026.https://www.nasdaq.com/articles/edward-sterck-platinum-deep-deficit-again-will-price-keep-rising-2026