Is the Platinum Market Transparent?
The platinum market has long been seen as somewhat opaque, with prices set on a few major exchanges far from key consumers like China, which uses nearly 30% of the world’s supply. But recent changes, especially China’s new platinum futures on the Guangzhou Futures Exchange (GFEX) launched in December 2025, are pushing for more openness by adding local price discovery and daily inventory reports. Before this, Chinese buyers had to follow prices from places like the New York Mercantile Exchange or London Platinum and Palladium Market, mixing in currency risks and leaving little insight into Asia’s huge demand.
China’s move fixes that gap. The GFEX contracts are in RMB, use local platinum forms like ingots and sponge, and aim to draw in both factories and investors. This creates a RMB benchmark that could spread worldwide, boosting liquidity through better trading links across markets. Experts note it improves transparency with public warehouse updates, helping everyone see real stockpiles and flows. For example, the World Platinum Investment Council points out how this opens platinum to more Chinese asset managers and could lift demand as trading grows.
Still, full transparency is not there yet. Early trading faces risks of manipulation when volumes are low and big players dominate. Russia’s top palladium maker sees a platinum supply deficit of 300,000 ounces this year, excluding investors, but forecasts differ, like the World Platinum Investment Council expecting balance next year. Mining stays concentrated in South Africa, Russia, and Zimbabwe, where supply chains lack full visibility on sustainability and ethics.
Other issues cloud the picture. Platinum sits in refineries and car catalysts for years, slowing scrap supply even as prices rise. Investment buying jumped 77% in 2024, led by China, but without clear data on bars, coins, and ETFs, it’s hard to track. Substitution with palladium in cars happens slower than thought, adding uncertainty.
China’s steps, like calling platinum a critical mineral and easing VAT rules, level the field and support GFEX. This could mean more stable prices for miners and users, but global markets need stronger rules and data sharing to match gold’s clarity. Places like Brazil gain from stable rules, drawing new projects.
Sources
https://discoveryalert.com.au/platinum-futures-market-2025-china-entry/
https://evrimagaci.org/gpt/china-redefines-platinum-market-with-strategic-shift-519421
https://platinuminvestment.com/about/60-seconds-in-platinum/2025/11/27
https://www.xlence.com/en/news-analysis/russias-largest-palladium-producer-sees-platinum-deficit-this-year-commerzbank/
https://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the
https://www.mordorintelligence.com/industry-reports/platinum-market
https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/
https://www.cmegroup.com/newsletters/metals-options-update/metals-options-update-december-2025.html
https://www.emergenresearch.com/industry-report/platinum-group-metals-market