Platinum has been catching the attention of investors and market watchers in 2025, with prices showing a strong upward trend. After starting the year around $967 per ounce, platinum has surged over 20% to reach levels above $1,090. This rally is driven by a mix of supply shortages and growing demand, especially from China.
One key factor pushing platinum prices higher is the ongoing supply deficit. For the third year in a row, there simply isn’t enough platinum being produced to meet global demand. Mining output in South Africa—the world’s largest producer—is down, and recycling rates have also fallen. The World Platinum Investment Council estimates that this shortfall will be close to 850,000 ounces for 2025 alone. At the same time, physical stockpiles are shrinking rapidly; above-ground reserves are expected to drop by about a quarter this year to just under two and a half million ounces—less than four months’ worth of global consumption.
On the demand side, Chinese buyers have stepped up their purchases significantly. In April 2025 alone, imports jumped nearly 50% compared to March as investors sought alternatives amid high gold prices. This surge includes more buying of platinum bars, coins, and jewelry—signaling strong interest from both retail investors and industrial users like hybrid vehicle manufacturers who rely on platinum for catalytic converters.
Looking ahead at price targets: some forecasts see platinum reaching $1,400 by mid-2025 and climbing further toward $1,500 by mid-2026 as these supply-demand imbalances persist. More bullish views suggest even higher milestones could be reached within this decade—with prices potentially doubling or tripling over several years if deficits continue and demand grows.
So where does $1,800 fit into all this? Given current momentum combined with structural factors like tightening supplies and rising Chinese appetite for physical metal investments plus industrial use growth globally—it’s reasonable that bulls could target $1,800 next as part of an extended rally phase beyond initial gains near $1,100-$1,400 levels seen so far in 2025.
In essence: Platinum’s price story right now is one shaped by scarcity meeting rising interest from multiple fronts—a classic setup for further upside potential well beyond recent highs if these trends hold steady or intensify through coming months into next year.