Platinum is quietly gearing up for a major price surge, and the main driver behind this potential bull run is its growing scarcity. Unlike gold, which often steals the spotlight, platinum’s story is one of tightening supply and rising demand that could push prices sharply higher in the near future.
The platinum market has been running a significant deficit for three years straight. In 2023, there was nearly a 900,000-ounce shortfall; in 2024, it worsened to almost 1 million ounces; and forecasts suggest another large deficit close to that size for 2025. This means more platinum is being used than mined or recycled each year. If this trend continues, the stockpiles of above-ground platinum could be exhausted within just a few years.
One key reason for this shortage lies in where most of the world’s platinum comes from: South Africa. This country produces about three-quarters of global supply but faces ongoing challenges like electricity shortages, labor strikes, and strict regulations that limit mining output. On top of that, new mines are rare because finding new deposits is difficult and expensive. Recycling isn’t filling the gap either since it remains limited compared to demand growth.
Meanwhile, demand for platinum keeps climbing across several sectors:
– The automotive industry relies on platinum for catalytic converters to reduce emissions.
– Jewelry markets—especially in China—are expanding their use of this precious metal.
– Industrial applications continue to grow.
– Investors are increasingly turning toward platinum as an alternative asset amid shifting market conditions.
This combination creates a perfect storm: shrinking supply meets rising demand with little relief expected soon.
The impact on prices has already been dramatic. Platinum surged over 40% so far this year alone and recently hit five-year highs above $1,300 per ounce—outperforming gold during the same period by a noticeable margin.
What makes this situation even more compelling is how quickly inventories are disappearing while production struggles to keep pace with consumption growth estimated at around 12% annually relative to available supply shortfalls nearing similar proportions.
All signs point toward an approaching tipping point where investors may rush into buying more aggressively as they anticipate further price gains fueled by scarcity rather than speculation alone.
In essence: Platinum’s rarity combined with persistent deficits sets up conditions ripe for sustained upward momentum—a massive bull run driven by real-world fundamentals rather than hype or temporary trends.