Platinum has seen a massive rally in 2025, with prices more than doubling to hit a 17-year high near $1,800 per ounce, driven by tight supply and strong demand. For long-term investors, the outlook remains positive due to ongoing deficits, supply challenges, and growing use in green technologies, even as the market may balance out in 2026.
This year started with platinum at around $910 per ounce, but it surged 94% by mid-December, outpacing gold and silver.https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year The World Platinum Investment Council reports a deficit of about one million ounces in 2025, marking the third year in a row of shortages.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf South Africa, which produces 80% of the world’s platinum, faces power outages, old mines, and high costs that keep output low.https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year
Demand comes from cars, where platinum cleans exhaust in catalytic converters, and now from hydrogen fuel cells for clean energy. Investors have piled in too, with bars, coins, and ETFs boosting prices as people seek hard assets amid inflation and falling interest rates.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Trading on China’s new futures exchange has added pressure, pulling metal from other markets and raising borrow costs to 14%.https://ww.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792918.html
Looking to 2026, forecasts show a shift. Supply may rise slightly from recycling, and investment demand could drop 52% as some ETF holders take profits, leading to a small surplus of 20,000 ounces.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Auto demand might recover 9% after a dip.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Prices could average $1,670 to $2,340, higher than 2025 but with less wild swings.https://gerrardsbullion.com/invest/2026-platinum-predictions-will-tight-supply-keep-prices-high/
Over the longer term, supply stays fragile. Deficits could return if disruptions hit South Africa or demand grows from hydrogen tech. Analysts see platinum as a solid hold alongside gold and silver for those okay with ups and downs, thanks to its role in green shifts and as a store of value.https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year
Sources
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year
https://gerrardsbullion.com/invest/2026-platinum-predictions-will-tight-supply-keep-prices-high/
https://ww.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792918.html
https://www.leadlagreport.com/p/platinums-perfect-storm-why-select
https://www.youtube.com/watch?v=M9FkBSlE1CY