Platinum prices have been on a notable rise in 2025, driven by a combination of supply shortages and growing demand, especially from China. This year marks the third consecutive annual deficit in platinum supply, with the World Platinum Investment Council forecasting a shortfall of nearly 850,000 ounces. Mining output has declined, particularly in South Africa—the world’s largest producer—and recycling rates have dropped as well. These factors are tightening the market significantly.
At the same time, Chinese demand for platinum has surged dramatically. Imports reached record monthly levels recently as investors turned to platinum bars, coins, and jewelry as alternatives amid high gold prices. This increased appetite from China is adding upward pressure on prices.
Physical stockpiles of platinum are shrinking fast too. Above-ground stocks are expected to fall by about 25% this year to just over 2.5 million ounces—less than four months’ worth of global demand—which means any disruption or spike in consumption could push prices higher quickly.
Given these dynamics—persistent supply deficits combined with strong Chinese buying interest—the price of platinum is poised for further gains beyond its current levels around $1,100 per ounce earlier this year.
Looking ahead to whether $1,700 per ounce is sustainable: forecasts suggest that reaching such a level is plausible but depends heavily on continued tightness in supply and sustained demand growth. Some long-term projections see platinum climbing steadily over the next few years toward $1,400 by mid-2025 and potentially surpassing $1,500 by mid-2026 as deficits persist and stockpiles dwindle further.
However, volatility remains possible due to factors like changes in investor sentiment or unexpected shifts in mining output or recycling rates. If these risks materialize negatively—for example if mining recovers faster than expected or if demand softens—prices could struggle to hold at elevated levels like $1,700.
On balance though—with ongoing structural shortages and robust industrial plus investment demand—it appears that not only can $1,700 be reached but it may become a sustainable price point over time if current trends continue without major disruptions.
In essence: Platinum’s market fundamentals today support an optimistic outlook where higher prices are justified by real scarcity and growing global interest—especially from key markets like China—and this sets the stage for potential new highs well above recent trading ranges seen so far this year.