Platinum has been making waves in 2025, outperforming both gold and silver with an impressive surge. While gold and silver have gained around 30% and 26% respectively this year, platinum has outpaced them all with a remarkable 40% increase since January. Even more striking is platinum’s recent one-month rally, where it jumped about 30%, compared to gold’s 7% and silver’s 13%. This sharp rise has pushed platinum prices up to around $1,250 per ounce—a level not seen since April 2021.
Looking back at history helps put this into perspective. Platinum’s price behavior tends to be volatile with dramatic spikes followed by swift declines. For example, in the early 1980s, platinum soared from roughly $190 to $900 within two years but then crashed by about 70% over the next couple of years. Similarly, after peaking near $2,166 in April 2008, it plunged more than half its value within less than a year. These patterns suggest that while big gains are possible for platinum investors, they can also be short-lived.
Currently trading well below its all-time highs and far less expensive than gold—which is hovering above $3,300 per ounce—platinum still holds strong appeal due to supply constraints and industrial demand. The World Platinum Investment Council forecasts a significant supply deficit this year as mining output is expected to drop by about six percent compared to last year. This tightening supply combined with steady industrial use (especially in automotive catalytic converters) supports the bullish case for higher prices.
If platinum were to match gold’s roughly 30% gain seen so far in 2025 from current levels near $1,250 or slightly lower around $1,070 recently reported earlier this year—it could push toward or even beyond the psychologically important threshold of $1,600 per ounce.
Such a move would mark a substantial recovery for platinum but would still keep it well below its historic peaks while narrowing the gap between itself and gold significantly—gold currently trades at more than three times the price of platinum.
In essence: if platinum continues on its current momentum or catches up fully with gold’s gains this year without another sharp correction like those seen historically—it could indeed reach around $1,600 next as investors seek alternatives amid ongoing market shifts and supply challenges driving tighter fundamentals for this precious metal.