Platinum is gearing up for a major price boom in 2025, driven by a mix of shrinking supply and growing demand that’s creating a tight market. This rare metal, often overshadowed by gold, is now attracting serious attention because the balance between how much platinum is mined and how much people want to buy it is becoming increasingly strained.
One of the biggest reasons behind this surge is the falling supply. In 2025, newly mined platinum production is expected to drop by about 6%, reversing recent growth trends. This decline mainly comes from challenges in key mining regions like South Africa, where production issues and limited recycling mean less metal reaches the market. On top of that, there are no big new mines coming online soon to boost supply. As a result, above-ground stocks—the reserves held outside of mines—are shrinking fast and could fall to critically low levels around just 2.5 million ounces this year.
At the same time, demand for platinum keeps rising across several important sectors. The automotive industry remains a strong buyer because platinum plays a crucial role in catalytic converters that reduce vehicle emissions. Even though electric vehicles are growing in popularity (which use less or no platinum), traditional internal combustion engines still dominate many markets worldwide for now.
Jewelry demand has also picked up significantly, especially in China where consumer interest in precious metals continues to grow strongly. Industrial uses beyond cars—such as electronics and chemical processing—add further pressure on available supplies.
Investors have noticed these trends too and are increasingly interested in adding platinum to their portfolios as prices start climbing higher amid these persistent deficits.
All these factors combined mean that 2025 could be the year when platinum breaks out from its long period of relative quietness on price charts into something much more dynamic. Forecasts suggest prices might reach $1,200 or even $1,400 per ounce during the year as markets react to ongoing shortages and robust buying interest.
In essence: fewer new ounces coming out of mines plus more buyers chasing those ounces equals upward pressure on prices—a classic recipe for a boom cycle unfolding right now with platinum at its center.