Platinum prices swing up and down more wildly than many other metals because small changes in supply or demand can tip the balance fast. Unlike gold, which has steady investor interest, platinum relies heavily on industry uses, making it sensitive to factory output and global events.
Most platinum comes from just a few mines in South Africa, where strikes, power cuts, or a weak local currency can keep supply high even during problems.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ For example, between 2016 and 2020, prices stayed stuck in a narrow range around $755 to $1,047 despite mining issues there, as producers kept exporting lots of metal thanks to high output and a cheap rand.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/
The auto industry eats up about 40 percent of platinum for catalytic converters in cars, especially diesels.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ When car sales drop, like during the chip shortage from 2021 to 2022, demand for platinum crashes, pulling prices down hard as fewer converters get made.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ On the flip side, in 2025, prices jumped over 40 percent to near $1,400 an ounce as automakers switched from palladium to platinum amid tight supplies.https://www.goldavenue.com/en/blog/newsletter-precious-metals-spotlight/should-you-consider-investing-in-platinum-and-palladium
Investor buying adds more ups and downs. Platinum lacks the big, steady demand gold enjoys, so when traders pile in or out, like during 2022 to 2023 amid Middle East and Ukraine tensions, prices recover fast with rising auto and glass demand.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ But in late 2025, investment demand turned volatile, with stocks building then liquidating, pushing markets toward small surpluses.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
New tech threatens even sharper drops. Researchers found a way to slash platinum use in catalysts by over 90 percent using super-thin layers, which could crush industrial demand long-term if factories adopt it.https://capital-manager.com/is-the-platinum-price-threatened-with-a-sharp-decline-in-the-future/ The market has run deficits for seven of the last 11 years through 2025, yet prices only rose big in 2022 due to sanction fears on Russian supply.https://www.aberdeeninvestments.com/en-us/investor/insights-and-research/commodities-the-year-that-was-the-year-that-could-be-2026https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
A stronger US dollar or economic slowdowns also drag prices lower, as they did in past consolidations.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ Broader market interventions in stocks and bonds can spill over, making precious metals like platinum react to hidden risks in the system.https://goldbroker.com/news/precious-metals-decode-market-interventions-3646
Sources
https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/
https://capital-manager.com/is-the-platinum-price-threatened-with-a-sharp-decline-in-the-future/
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf