Platinum’s price is being shaped strongly by what the market expects about its future supply and demand. Right now, the outlook for platinum shows persistent shortages. Experts forecast that from 2025 through 2029, there will be an annual deficit in platinum supply averaging around 9% of total demand. This means more platinum is being used than mined or recycled each year, which naturally puts upward pressure on prices.
Several factors feed into these expectations. First, physical stocks of platinum above ground are shrinking as deficits continue year after year. At the same time, geographic mismatches between where platinum is produced and where it’s needed create logistical challenges that tighten availability further.
On the demand side, new growth is emerging especially from China’s jewellery market—an area that had been less prominent before but now adds fresh appetite for this precious metal. Meanwhile, industrial uses remain steady or grow modestly despite some global economic uncertainty.
Speaking of uncertainty: global economic growth forecasts have been downgraded recently due to trade tensions and other geopolitical issues. Normally this might weigh on commodity prices like platinum because slower economies use less industrial metals. However, investors are also watching broader trends such as de-dollarisation—the move away from US dollar dominance in international trade—which has boosted interest in precious metals including gold and white metals like platinum and silver.
This mix of ongoing supply deficits combined with shifting investor behavior under uncertain macroeconomic conditions has driven a notable rise in platinum prices so far this year—up about a third compared to last year.
Looking ahead, many analysts predict continued price gains for platinum over the next few years as these fundamental forces persist: tight supplies meeting steady or growing demand amid complex global economic shifts keep market expectations bullish on this metal’s value.
In essence, it’s not just current production numbers but what traders and investors believe will happen with supply chains, industrial needs, jewellery trends, and currency dynamics that shape how much they’re willing to pay for each ounce of platinum today—and those beliefs are pushing prices higher right now.