Platinum demand in China is experiencing a significant surge, with growth projected at around 15% for 2025. This uptick marks a notable shift after years of decline in the Chinese platinum jewelry market. Several factors are driving this resurgence, reshaping both consumer behavior and the global platinum market.
One key reason behind the rising demand is the slump in gold jewelry sales in China. Gold prices have soared to record highs, reaching over $3,500 an ounce earlier this year. This sharp increase has made gold jewelry less affordable for many consumers, leading to a nearly 27% drop in gold jewelry sales during the first quarter of 2025 compared to last year. However, investment demand for gold bars and coins remains strong as investors seek safe-haven assets.
In contrast, platinum offers a more affordable alternative while still holding appeal as a precious metal. Its price is currently about one-third that of gold per ounce, making it attractive for consumers who traditionally value precious metals but are priced out of buying gold jewelry. Jewelry makers and retailers are responding by expanding their offerings of platinum pieces; notably, around ten new platinum-focused showrooms have opened recently in Shenzhen’s Shuibei region alone—a threefold increase from previous levels.
This growing interest extends beyond just jewelry fabrication into investment products like smaller platinum bars and coins—retail investment demand jumped by nearly 48%, with some segments seeing increases over 100%. The combination of stronger consumer interest and investor appetite has led to Chinese imports hitting their highest monthly level in over a year.
On the supply side globally, there are tightening constraints that further support higher prices. Mining output from major producers like South Africa has declined slightly due to operational challenges and lower recycling rates reduce available secondary supply. As a result, analysts forecast continued market deficits through 2025—the third consecutive year—putting upward pressure on prices.
These dynamics have pushed platinum prices up more than 20% so far this year with spot prices climbing above $1,200 per ounce at times during mid-2025—a level not seen since early last year. The interplay between robust Chinese demand growth driven by shifting consumer preferences away from expensive gold toward relatively cheaper platinum combined with constrained global supply suggests that elevated price levels could persist or even rise further throughout the remainder of the year.
For buyers and investors watching precious metals markets closely today’s trends highlight how China’s evolving tastes can significantly influence global commodity pricing—not only because it is such an enormous market but also because its consumers’ choices ripple through production decisions worldwide.
In essence: China’s pivot towards more affordable yet prestigious metals like platinum amid high gold costs signals both opportunity and challenge ahead for jewelers globally—and sets an intriguing stage for how precious metal markets will perform through all of 2025.