Platinum prices have been on an upward trend in 2025, driven largely by supply shortages and growing demand, especially from China. This year alone, platinum has surged over 20%, reaching levels not seen in two years. The main reason behind this rally is a persistent supply deficit that has now lasted for three consecutive years.
The global platinum market is tightening because the total supply is shrinking. Mining output, particularly from South Africa—the world’s largest producer—is declining. Recycling rates are also down, which means less platinum is being recovered and put back into circulation. As a result, the total available platinum this year is expected to drop to its lowest point in five years.
Stocks of above-ground platinum are also falling sharply. These reserves have decreased by about a quarter and now represent less than four months’ worth of global demand. This limited buffer makes the market more sensitive to any disruptions or increased buying pressure.
On the demand side, China plays a crucial role. Chinese imports of platinum jumped significantly in early 2025—by nearly half compared to previous months—driven by strong interest in bars, coins, and jewelry as investors look for alternatives amid high gold prices. Additionally, industrial uses such as hybrid vehicle manufacturing continue to support steady demand growth.
Looking ahead through 2025 and beyond into the mid-2020s, forecasts suggest that these supply constraints combined with rising demand could push platinum prices higher still. Some projections expect prices to climb above $1,300 per ounce within this period and potentially reach $1,400 or more by mid-2025 or early 2026.
Over longer time frames stretching into the next decade or so, analysts predict even more substantial gains if current trends persist—potentially doubling or tripling today’s price levels as deficits continue and new sources of demand emerge.
In short: ongoing shortages caused by lower mining output and recycling rates alongside surging Chinese investment interest are key factors likely driving up platinum prices now—and possibly keeping them elevated for years ahead.