Platinum has been quietly making a strong comeback since 2021, shaking off years of relative underperformance compared to other precious metals like gold. Several key changes have driven this resurgence, reshaping the platinum market in notable ways.
First, supply constraints have become a defining feature. Platinum production has faced ongoing challenges, especially in South Africa—the world’s largest producer—where mining disruptions and lower productivity have limited output. In fact, newly mined platinum is expected to fall by about 6% in 2025 compared to previous years. Recycling rates remain low and no major new mines are coming online soon, which means supply growth is effectively capped despite rising prices.
On the demand side, multiple sectors are fueling increased appetite for platinum. Jewelry demand is growing steadily worldwide but particularly strongly in India and China where platinum’s appeal as a symbol of luxury remains robust. Automotive demand also plays a big role; while electric vehicle adoption has slowed somewhat—reducing some anticipated demand for platinum catalysts—the metal still sees solid use in traditional catalytic converters that reduce emissions from gasoline and diesel engines.
Investment interest has surged as well amid these supply-demand imbalances. Investors are increasingly viewing platinum as an attractive asset given its rarity and the structural deficits emerging in its market. The global deficit—the gap between how much platinum is needed versus how much is produced—is projected to reach nearly one million ounces this year alone, marking the third consecutive year of significant shortfalls that threaten to deplete above-ground inventories within just a few years.
These combined factors have pushed platinum prices higher than they’ve been in several years, with recent rallies taking prices into overbought territory on technical charts—a sign that momentum remains strong even if short-term price corrections occur.
In essence, what’s changed since 2021 is that persistent supply shortages meet rising multi-sector demand against a backdrop of increasing investor interest and favorable economic conditions such as easing trade tensions and weaker US dollar influence on commodities pricing. This sets up an environment where platinum could finally shed its long-standing shadow behind gold and silver to claim renewed status among precious metals with potential for sustained price gains ahead.