Platinum prices have been on an interesting journey lately, shaped by a mix of supply challenges and growing demand. After starting 2024 around $1,005 per ounce, platinum dipped slightly but has shown signs of gaining momentum again in 2025. Recently, the price has hovered above $1,225 and even touched the $1,300 mark during bullish trading phases.
One big factor moving the market now is a persistent supply deficit. The world is producing less newly mined platinum this year—about 6% less than last year—and this drop reverses previous growth trends. Mining difficulties in key regions like South Africa are limiting how much platinum can be brought to market. At the same time, recycling rates remain low and no major new mines are expected soon to fill the gap.
On the demand side, several sectors are driving interest in platinum. The automotive industry still relies heavily on it for catalytic converters that reduce emissions. Jewelry demand is also rising sharply in China, adding another layer of consumption growth. Investors have started paying more attention too as they look for alternatives amid global economic uncertainty and shifts away from traditional currencies like the US dollar.
These combined forces—tightening supply with steady or increasing demand—have led to significant deficits for three years running now. Experts estimate these shortfalls could average around 727 thousand ounces annually through 2029 or about 9% of total demand each year. Above-ground stocks of platinum are shrinking fast; projections suggest only about 2.5 million ounces will remain by year’s end—a critically low level compared to historical norms.
Because of these factors, many analysts believe that platinum may be approaching a tipping point where prices could rise substantially over coming months and years. Forecasts suggest prices might reach $1,400 by mid-2025 and climb further toward $1,500 by mid-2026 if current trends continue.
In summary (without summarizing), what’s moving platinum prices now boils down to a classic case: constrained supply unable to keep up with growing global needs across industries plus investor interest sparked by broader economic shifts—all combining to push this rare metal into potentially higher price territory soon enough.