Platinum prices have soared in 2025, hitting levels around $1,974 per ounce by mid-December, far beyond what most analysts predicted at the start of the year.https://tradingeconomics.com/commodity/platinumhttps://fortune.com/article/current-price-of-platinum-12-16-2025/ Many experts foresaw modest gains or even price consolidation near $1,700, missing the massive rally that pushed it up over 114 percent from a year ago.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/https://tradingeconomics.com/commodity/platinum
One big reason for the underestimate was overly pessimistic views on demand. Analysts expected total platinum demand to drop five percent in 2025 due to weaker industrial use and slower car sales, projecting it at 7,821 thousand ounces.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Instead, demand surged, outpacing supply by much more than forecasted. Last year, the deficit hit 995 thousand ounces, 46 percent higher than predicted, and 2025 is on track for an even larger shortfall of around 848 thousand ounces or more.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Unexpected investment buying caught forecasters off guard. Fears of tariffs displaced metal from markets, much like with gold and silver, tightening supplies further.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 Platinum also benefited from gold’s rally, drawing investors who rotated into it as a cheaper alternative, especially in China where imports jumped sharply.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 Jewelry demand picked up too, as higher gold prices made platinum a fresh option.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929
Supply problems amplified the surprise. South Africa, which provides over 70 percent of the world’s platinum, faced flooding and weaker output from mines.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929https://fortune.com/article/current-price-of-platinum-12-16-2025/ Overall supply is down two percent to 7,129 thousand ounces, with mining output falling five percent as companies could not repeat prior inventory draws.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf This created a third straight deficit, now pegged at 692 thousand ounces for 2025.https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.html
Easier money policies added fuel. Federal Reserve rate cuts and talk of more reductions weakened the dollar, boosting commodity appeal.https://www.cmegroup.com/newsletters/metals-options-update/metals-options-update-december-2025.htmlhttps://tradingeconomics.com/commodity/platinum Platinum options trading hit record pace, reflecting this shift as prices climbed to $1,700 and beyond, the highest since 2011.