Platinum has been making headlines in 2025, and for good reason. The shiny metal is on a roll, with prices climbing higher than they’ve been in years. But what’s behind this surge, and can it keep going? Let’s break it down in plain language.
First off, platinum prices have jumped more than 20% since the start of the year. By late May, they hit a two-year high of over $1,096 per ounce. That’s a big leap from where things were just months ago.
Why is platinum suddenly so hot? The main reason is simple: there isn’t enough to go around. For the third year running, experts say there will be less platinum available than people want to buy—what they call a “supply deficit.” This time around, the shortfall could be close to a million ounces for 2025 alone.
Where did all the platinum go? Mining output has dropped off in South Africa—the world’s biggest producer—and recycling rates are down too. As a result, above-ground stockpiles are shrinking fast; some estimates say there may only be enough extra supply left to cover less than four months of global demand.
At the same time as supply tightens up, demand is heating up too—especially from China. Chinese investors have been snapping up platinum bars and coins at record rates this spring. Some see it as an alternative to gold or other investments that have gotten expensive lately.
So what does all this mean for prices moving forward? Most forecasts suggest that platinum will keep rising through 2025 and beyond if these trends hold steady. Some analysts even think we could see much higher numbers by mid-decade if deficits continue and demand stays strong.
But nothing lasts forever in markets like these—so while things look bright right now thanks to tight supplies and eager buyers overseas (especially China), surprises can always pop up that change everything overnight!
For now though: buckle up if you own any or are thinking about jumping into platinum; its bull run seems set for at least another stretch ahead!