Platinum is showing strong signs of outperforming gold in the second half of 2025, driven by a mix of supply shortages, rising demand, and unique market dynamics. So far this year, platinum has surged about 40%, outpacing gold’s roughly 30% gain. This recent rally has been especially sharp in the past month alone, with platinum jumping around 30% compared to smaller increases for gold and silver.
One key factor behind platinum’s rise is a significant supply deficit. The World Platinum Investment Council forecasts that platinum will face a shortfall close to one million ounces in 2025 for the third year running. This persistent shortage tightens physical availability and supports higher prices.
Demand for platinum is also growing due to its expanding role in clean energy technologies like hydrogen fuel cells and catalytic converters used in vehicles aiming to reduce emissions. These industrial uses add an extra layer of support beyond traditional investment demand.
Historically, platinum prices have experienced sharp spikes followed by steep declines. For example, after reaching highs near $2,166 per ounce in 2008 or surging dramatically around 1980, prices quickly fell afterward. Currently trading near four-year highs above $1,250 per ounce but well below those peaks suggests room for further upward movement if current trends continue.
Meanwhile, gold remains strong with forecasts predicting it could average over $3,200 per ounce this year—an impressive increase fueled by geopolitical tensions and macroeconomic uncertainty driving central banks and investors toward safe-haven assets like gold.
However, unlike gold’s steady climb supported mainly by investment demand amid economic worries and inflation concerns, platinum benefits from both tightening supply fundamentals and growing industrial use tied to green technologies.
In essence:
– Platinum faces ongoing supply deficits expected through 2025.
– Demand from clean energy sectors is rising.
– Its price gains so far this year have outpaced both gold and silver.
– Historical patterns show potential for volatile but significant price moves.
– Gold continues its own bullish run based on safe-haven appeal amid global uncertainties but may not see as dramatic a spike as platinum if these industrial trends persist.
Given these factors combined—the tight market balance on the supply side plus increasing real-world applications—platinum looks positioned not just to keep pace with but potentially outperform gold during the rest of 2025. Investors watching precious metals should consider how these differing drivers might shape opportunities between these two metals moving forward.