The platinum market in 2025 is showing signs of a remarkable year, driven by a mix of tight supply and growing demand that could push prices to new highs. For the third year running, platinum is facing significant supply deficits. Experts expect the shortfall in 2025 to be close to one million ounces, which is about 12% less than what the world needs. This ongoing shortage has been eating into global stockpiles, which are shrinking rapidly and may run out within a couple of years if trends continue.
One major reason for this tight supply is production challenges, especially in South Africa where most of the world’s platinum comes from. Mining output has dropped and recycling rates have fallen too, meaning less metal is coming back into circulation. At the same time, there are no big new mines ready to boost supply anytime soon. This combination keeps available platinum limited despite rising prices.
On the demand side, several factors are pushing interest higher. The automotive industry still relies on platinum for catalytic converters in many vehicles, including hybrids that remain popular even as electric vehicle growth slows somewhat. Jewelry demand is also picking up strongly—especially in China and India—where consumers value platinum’s prestige and durability as a precious metal for rings and other adornments.
Chinese investors have become particularly active buyers this year, snapping up bars, coins, and jewelry at record levels as they look for alternatives amid high gold prices. This surge has helped drive platinum prices up more than 20% so far in 2025 with some forecasts suggesting it could reach $4,000 per ounce before gold does.
All these factors together create what analysts call a “tipping point.” With supplies constrained by mining limits and stockpiles dwindling fast while demand grows across multiple sectors globally—including investment interest—platinum looks poised for potentially record-breaking price gains this year or soon after.
In short: Platinum’s story today isn’t just about being rare; it’s about an imbalance between how much exists versus how much people want—and that gap appears set to widen further through 2025 making it one of the most exciting metals markets right now.