Is Platinum Overvalued Right Now?
Platinum prices have soared in 2025, hitting around $1,932 per ounce as of December 19, with a 92 percent gain for the year so far.https://tradingeconomics.com/commodity/platinumhttps://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 This rally has sparked talk about whether the metal is priced too high. But supply shortages and strong demand suggest it may not be overvalued yet.
Platinum demand outstripped supply by nearly a million ounces last year, and experts now predict a deficit of 692,000 to 848,000 ounces by the end of 2025.https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.htmlhttps://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 Supply is down two percent this year to about 7.1 million ounces, thanks to issues like flooding in South Africa, which produces over 70 percent of the world’s platinum.https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.htmlhttps://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 This marks the third straight year of shortfalls.
Demand comes mainly from cars, where platinum helps clean exhaust in catalytic converters. The auto industry is recovering, and China has boosted imports sharply, pushing prices up 47 percent earlier this year.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 Investors are also rotating money from gold into platinum, fueled by looser money policies and a weaker dollar.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 New futures contracts in China have added to the buying frenzy, with platinum jumping to $1,935 recently.https://www.bullionvault.com/gold-news/gold-price-news/platinum-gfex-palladium-121720251
Looking ahead, most forecasts see prices climbing higher. Analysts expect $1,714 to $1,770 by late 2025, then up to $2,340 in 2026.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ Longer term, some predict $3,853 by 2030 or even $8,029 by 2037, though those are less certain due to shifting factors like green tech needs.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ The market may balance out in 2026 with a small surplus, but tight supply keeps upward pressure on now.https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.html
These trends point to platinum trading at levels backed by real shortages, not just hype. Prices near 17-year highs reflect that tightness.