Platinum has been showing strong momentum in 2025, driven by a mix of supply constraints and growing demand. The market is expected to remain in deficit through the next several years, with annual shortfalls averaging around 727,000 ounces from 2025 to 2029. This persistent deficit is a key factor supporting platinum’s price strength this year.
Several factors contribute to this outlook. Mining output has not kept pace with industrial demand, especially from the automotive sector where platinum is used in catalytic converters for diesel engines. Despite the rise of electric vehicles—which use less platinum—the overall demand from autos hasn’t declined significantly. Additionally, emerging uses such as hydrogen fuel cells are boosting industrial interest in platinum.
On top of that, above-ground stocks of platinum are depleting while physical metal supply chains face geographic disruptions. China’s jewellery market is also expanding its appetite for platinum, adding another layer of demand growth.
The broader economic environment remains uncertain with global growth forecasts downgraded and geopolitical tensions affecting trade patterns. Yet these challenges have not dampened investor interest; instead, they have highlighted trends like de-dollarisation that tend to support precious metals including platinum.
Price-wise, analysts expect only modest gains for platinum through 2025 compared to gold or silver but see it as a contrarian investment opportunity given its structural deficits and industrial importance. The cost of mining an ounce now approaches the market price itself—this could act as a floor preventing sharp declines and encouraging stability or gradual appreciation.
In essence, while short-term volatility can occur due to macroeconomic shifts or market sentiment swings, the fundamental supply-demand imbalance combined with new industrial applications suggests that **platinum can maintain much of its momentum throughout 2025** and potentially beyond into the latter half of this decade.