Government spending around the world is playing a big role in pushing platinum prices higher in 2025. As countries borrow and spend more, investors turn to precious metals like platinum to protect their money from falling value.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.aberdeeninvestments.com/en-us/investor/insights-and-research/commodities-the-year-that-was-the-year-that-could-be-2026
In the US, the government is spending about $7 trillion a year and borrowing around $2 trillion to cover the gap. This huge deficit means more Treasury bills are issued, creating stress in money markets as banks and investors scramble for cash.https://sprott.com/insights/gold-holds-gains-as-liquidity-stress-emerges/ To ease this, the Federal Reserve is stepping in with more liquidity, which some call QE-lite or quiet money printing. This setup, known as fiscal dominance, ties the Fed’s hands and raises fears of inflation from all the extra spending.https://sprott.com/insights/gold-holds-gains-as-liquidity-stress-emerges/
Investors see platinum as a safe bet in this environment. People worry the dollar will weaken due to US fiscal policies and politics, so they buy precious metals for diversification.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf This shift from leasing metal to outright buying has helped prices jump 16% in the third quarter of 2025 alone.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Platinum even hit a 17-year high above $1,924 an ounce recently, fueled by demand from China and the broader precious metals rally.https://energynews.oedigital.com/mineral-resources/2025/12/18/gold-prices-rise-as-inflation-data-drives-ratecut-bets
On top of that, the platinum market itself is tight. Demand outpaced supply by 179,000 ounces in Q3, leading to a full-year deficit of 692,000 ounces, or 9% of total demand.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Mine output dropped 5% as producers can’t keep drawing from stockpiles like before.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf This shortage makes prices more sensitive to big spending trends. Government policies on tariffs and clean energy also play in, as they affect trade and demand for platinum in cars and hydrogen tech.https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecastshttps://www.rff.org/publications/reports/projected-effects-of-the-clean-competition-act-of-2025/
Loss of buying power from rising debt and deficits is driving folks to metals beyond gold, including platinum.https://www.aberdeeninvestments.com/en-us/investor/insights-and-research/commodities-the-year-that-was-the-year-that-could-be-2026 With supply slow to catch up, government spending keeps adding upward pressure on prices.
Sources
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts
https://energynews.oedigital.com/mineral-resources/2025/12/18/gold-prices-rise-as-inflation-data-drives-ratecut-bets