Platinum is showing strong signs of a potential breakout in 2025, with many market watchers eyeing the $1,500 per ounce mark as a key milestone. The metal has been steadily climbing this year, fueled by a mix of supply shortages and rising demand, especially from China.
One major factor pushing platinum prices higher is the ongoing supply deficit. For the third year in a row, platinum production is falling short of demand. Mining output in South Africa—the world’s largest producer—is down, and recycling rates have dropped too. This means less platinum is available overall. Experts estimate that total supply will shrink by about 4% this year to around 7 million ounces, which is the lowest level seen in five years. At the same time, above-ground stocks are shrinking fast; they’re expected to fall by roughly 25%, leaving only enough platinum to cover less than four months of global demand.
On the other side of the equation is growing appetite for platinum among investors and industries alike. Chinese buyers have been particularly active recently—imports surged nearly 50% from March to April alone as investors sought alternatives to gold amid its high prices. Demand isn’t just coming from collectors or speculators; hybrid vehicle manufacturers also rely on platinum for catalytic converters that reduce emissions.
Price-wise, after starting 2024 near $1,000 an ounce and dipping slightly early on, platinum has rebounded strongly through mid-2025 with gains over 20%. Analysts forecast it will reach about $1,134 by mid-2025 and could push further toward $1,400 later in the year or early next year before potentially hitting $1,500 sometime around mid-2026 if current trends hold.
The path upward isn’t guaranteed without some bumps—prices have shown occasional weakness—but technical indicators suggest solid support levels near $1,225 per ounce are helping maintain bullish momentum right now.
Looking beyond just this year or next: longer-term forecasts see even more dramatic rises over coming years as supply constraints persist while industrial use expands globally.
In short: tight supplies combined with surging Chinese demand and steady industrial needs create an environment ripe for significant price gains in platinum during 2025—and possibly beyond—with many market participants watching closely for that breakthrough past $1,500 per ounce.