Platinum prices have been on an interesting journey in 2025, showing signs of strength after a somewhat quiet period in 2024. At the start of last year, platinum was priced just above $1,000 per ounce but dipped slightly below that mark during the year. However, this year has seen a notable turnaround with prices climbing steadily and even hitting a two-year high around $1,096 per ounce by late May.
One of the main reasons behind this price rally is a persistent shortage in supply. Mining output is expected to drop by about 6% this year compared to last year, largely because major producers like South Africa are producing less platinum. Recycling rates have also fallen, which means less platinum is coming back into circulation from old products. This combination has created what experts call a “supply deficit,” where demand outpaces how much platinum is available globally.
Adding to the tight market conditions are shrinking stockpiles held above ground—these reserves are dropping sharply and now cover less than four months’ worth of global demand. When supplies get this tight, prices usually respond by moving higher.
On the demand side, China plays an increasingly important role. Chinese investors have been buying more platinum bars, coins, and jewelry as they look for alternatives to gold—which has become quite expensive recently. In fact, imports into China surged dramatically in April 2025 alone—up nearly half compared to March—highlighting strong interest from one of the world’s biggest markets for precious metals.
Looking ahead into the second half of 2025, forecasts suggest that platinum could continue its upward trend but at a more moderate pace than earlier in the year. Prices might reach around $1,140 per ounce by year’s end according to some projections—a solid gain over current levels but not an explosive jump.
For investors and industries relying on platinum—such as those making catalytic converters for hybrid vehicles—the key factors will be whether supply can catch up or if demand keeps growing stronger worldwide. If mining output remains constrained and Chinese buying stays robust or increases further, we could see prices push closer toward $1,300 or beyond sometime soon.
In short: Platinum’s price story for late 2025 looks like one driven by tighter supplies meeting rising global appetite—with steady gains likely rather than wild swings—as markets adjust to these shifting fundamentals throughout the rest of the year.