Platinum’s price rally appears to be overdue, driven by a mix of supply shortages and rising demand, especially from China. After a period of relative stagnation and even some price drops earlier in 2024, platinum has recently seen a strong rebound. This surge is linked to tightening mine supply and growing investment interest worldwide.
One key factor is the expected drop in newly mined platinum output this year. The World Platinum Investment Council forecasts a 6% decline in production for 2025, which reverses the growth seen last year. This shrinking supply creates pressure on prices because less metal is available to meet demand.
On the demand side, China plays an increasingly important role. Chinese imports of platinum jumped significantly—by nearly half—in April compared to March, reaching their highest level in a year. This surge reflects changing consumer preferences: while gold jewelry sales have fallen sharply due to high gold prices, platinum jewelry sales have risen impressively by over 25%. Such shifts suggest that consumers are turning more toward platinum as an alternative precious metal.
Investment interest also fuels the rally. Investors often view precious metals like platinum as safe havens or hedges against inflation and economic uncertainty. With global markets facing various challenges, renewed investor appetite has helped push prices higher.
Looking ahead, forecasts predict that platinum could reach around $1,200 per ounce during 2025 amid ongoing supply deficits and sustained demand growth. Some projections are even more optimistic—expecting prices near $1,400 by mid-2025 and continuing upward beyond that point over subsequent years.
In short, after years of relatively muted performance compared with other precious metals like gold or silver, conditions now seem ripe for platinum’s price to catch up strongly due to fundamental market imbalances on both supply and demand fronts combined with shifting consumer trends globally.