Platinum is making waves in 2025, showing a strong price surge that’s catching the attention of investors and industries alike. This year, platinum prices have jumped significantly, outpacing gold and silver by a wide margin. The metal has climbed over 40% so far in 2025, reaching levels not seen in several years.
One key reason for this rise is a tightening supply. Most of the world’s platinum comes from South Africa, Russia, and North America. South Africa faces challenges like aging mining infrastructure and operational disruptions that are limiting how much platinum it can produce. In fact, total global supply is expected to drop about 4% this year to its lowest level in five years. At the same time, demand remains strong or even grows in some areas.
Automotive use plays a big role here because platinum is essential for catalytic converters that reduce harmful emissions from cars with internal combustion engines (ICE) and hybrids. While electric vehicles (EVs) don’t need as much platinum—if any—the shift away from rapid EV adoption back toward hybrids means more demand for the metal since hybrids require more platinum per vehicle than traditional ICE cars due to their complex emission control systems.
Stricter environmental regulations also boost demand by requiring higher amounts of platinum to meet tougher emissions standards like Europe’s upcoming Euro 7 rules. On top of automotive uses, jewelry demand—especially in China—is rebounding as consumers look for alternatives to expensive gold; many are turning to platinum instead because it offers similar prestige at a better price point.
Investment interest adds another layer of support as buyers purchase bars and coins aggressively worldwide while above-ground stocks shrink sharply—down about 31% this year—which signals less available metal sitting idle compared to ongoing needs.
Beyond these traditional uses lies an exciting future driver: clean energy technologies such as hydrogen fuel cells and electrolyzers rely heavily on platinum catalysts. As governments push hard on hydrogen infrastructure investments aiming at greener energy solutions, industrial demand outside automotive sectors could soar further.
All these factors combined create what some experts call a “perfect storm” for rising prices through tight supply meeting broadening use cases across multiple industries.
Looking ahead toward 2028, could we see prices hit $2,500 an ounce? It’s ambitious but not outlandish given current trends:
– Supply constraints seem persistent with no quick fixes.
– Demand drivers are diversifying beyond just cars into jewelry and clean energy.
– Regulatory pressures continue pushing up material intensity per vehicle.
– Investment appetite remains robust amid shrinking inventories.
If these conditions hold or intensify over the next few years without major new sources coming online or technological shifts reducing usage dramatically, doubling today’s price might be within reach by late decade.
In short: Platinum’s unique position at the crossroads of industry transformation—from stricter emission controls boosting hybrid car production to emerging green technologies demanding its rare properties—makes it one of the most compelling metals poised for significant gains through 2028 if current momentum continues unabated.