Platinum is expensive right now because of a big gap between demand and supply, with prices hitting around $1,813 per ounce as of mid-December 2025. This surge comes from strong needs in cars, clean energy tech, and investor buying, while mines struggle to keep up.https://fortune.com/article/current-price-of-platinum-12-16-2025/https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.html
The main reason starts with supply problems. South Africa produces most of the world’s platinum, but mines there face ongoing issues like disruptions and lower output. Total supply is expected to drop 2% this year to about 7,129 thousand ounces, creating a deficit of 692 thousand ounces, or 9% of demand. This shortage has lasted three years in a row, pushing prices up as there’s just not enough metal to go around.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.htmlhttps://www.imarcgroup.com/news/platinum-price-index
Demand is booming in key areas. The auto industry uses platinum in catalytic converters to cut emissions, especially for diesel and hybrid vehicles. Stricter global rules on pollution mean more cars need it. On top of that, hydrogen fuel cells for clean energy vehicles rely heavily on platinum, and governments are pushing hard for zero-emission tech. Jewelry and other uses like electronics and medical devices add to the pull.https://www.imarcgroup.com/news/platinum-price-indexhttps://thormetalsgroup.com/resource/december-12-2025-why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts
Investors are jumping in too. With gold prices high, platinum looks like a cheaper safe bet. People buy it to protect against inflation and economic worries. Prices jumped 16% just in the third quarter of 2025, and over the year, they’ve risen more than 77% since January. That’s the biggest gain since the 2008 crisis.https://fortune.com/article/current-price-of-platinum-12-16-2025/https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Other factors play a role, like a weaker US dollar making platinum cheaper for buyers abroad, and steady growth in places like China for jewelry. Recycling is not keeping pace, and things like tariffs or global trade add ups and downs. All this keeps the pressure on, with forecasts seeing prices climb to $1,770 or even $2,340 by next year.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Sources
https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/
https://www.imarcgroup.com/news/platinum-price-index
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf