Platinum has been quietly gaining attention in 2025, with its price soaring to levels not seen in over a decade. This surge is driven by a mix of shrinking supply and growing demand from various industries around the world.
One major factor behind platinum’s rising price is a significant supply deficit. Mining output is expected to drop by about 6% this year, reversing previous growth trends. Experts forecast that this shortfall will continue for several years, with annual deficits averaging nearly 9% of total demand through 2029. This means there simply isn’t enough newly mined platinum to meet the needs of buyers globally.
On the demand side, industrial use plays a crucial role. Platinum is essential in automotive catalytic converters, which help reduce harmful emissions from vehicles. As environmental regulations tighten worldwide and more countries push for cleaner technologies, car manufacturers are using more platinum than before.
Another exciting area boosting platinum’s appeal is hydrogen fuel cell technology. Fuel cells use platinum as a catalyst to generate clean energy from hydrogen gas—a promising alternative to fossil fuels that could power vehicles and industries with zero emissions.
Jewellery also remains an important driver of demand. In some markets like China and India, consumers are increasingly drawn to platinum jewellery not just for its beauty but also as an investment asset amid rising prices. Retailers report stronger customer interest as prices climb sharply—up about 45% so far this year—making it both a stylish choice and perceived store of value.
Investor interest has picked up too because of these tight market conditions combined with broader economic uncertainties such as global trade tensions and shifts away from traditional currencies like the US dollar. These factors have pushed precious metals like gold and silver higher; now investors are turning their attention toward white metals like platinum seeking new opportunities.
With forecasts suggesting prices could reach $1,200 or even $1,400 per ounce within the next year or two if current trends persist, many see potential for further gains ahead given ongoing supply constraints paired with expanding industrial applications worldwide.
In short: shrinking mine production plus growing uses in green technologies and jewellery are creating strong upward pressure on platinum prices right now—and that momentum may well continue into the near future as global economies adapt toward cleaner energy solutions while consumers embrace this precious metal anew.