Platinum demand is surging worldwide due to tight supplies, booming industrial uses, and new investment interest. Prices have more than doubled in 2025, hitting a 17-year high as buyers compete for limited metal from major producers like South Africa and Russia.https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.html
One big reason is the ongoing supply shortage. Experts at the World Platinum Investment Council predict an 850,000 ounce deficit for 2025, with shortfalls expected to continue through 2029, though recycling might ease it a bit later.https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/ South Africa, which supplies about 80% of global platinum, faces mining challenges like high costs, labor issues, and power problems that limit output. Russia, the second-largest producer, deals with geopolitical risks that disrupt exports.https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html
Demand is picking up fast in green energy, especially hydrogen production. Platinum plays a key role as a catalyst in fuel cells, and its use here could grow faster than in any other sector by 2030, adding up to 900,000 ounces of demand.https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html China just named platinum a strategic mineral, boosting its imports for hydrogen tech since it produces almost none domestically.https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html
Cars still need platinum too. While electric vehicles cut some demand for pollution-control catalytic converters, slower EV adoption in places like Europe and the US has helped. The EU recently relaxed rules on banning new gas and diesel cars by 2035, supporting ongoing use of platinum in engines.https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.html Jewelry demand is rising as well, with China now the top buyer of platinum bars and coins, surpassing the US.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Investors are jumping in, drawn by the rally in gold and other metals. New futures trading on China’s Guangzhou exchange has spiked activity and pulled in more physical metal. Banks are stocking up in the US to dodge tariff risks, while Europe and China compete for supplies, pushing borrowing costs to 14%—a sign of real tightness.https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.htmlhttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
This mix of limited supply and growing needs from industry, energy, and investors keeps pulling demand higher.
Sources
https://us.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792944.html
https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/
https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html
https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it