Platinum inventories are running low mainly because global demand keeps outpacing supply, creating big market deficits for the third year in a row. In 2025, experts predict a shortage of 692,000 ounces, or about 9 percent of yearly demand, which is pushing prices to 17-year highs.[1][2][3]
Supply starts with mining, and that is dropping. South Africa, the top producer, saw disruptions and could not keep up the extra output from last year. Total mine supply is down 5 percent from 2024, while overall platinum supply falls 2 percent to just over 7 million ounces.[1] Recycling helps a bit, up 7 or 8 percent thanks to old jewelry, but it cannot cover the gap.[1]
Demand is strong across many areas. Cars use platinum in exhaust systems to cut pollution, and that stays steady. Jewelry demand, especially from India, is high despite some slowdown from US tariffs. Investment is pouring in too, with traders buying up metal amid fears of trade restrictions.[2] In China, a new futures market on the Guangzhou Futures Exchange drew speculators, pulling more platinum there.[2] Europe and the US are competing for the same limited stocks, making things tighter.[2]
This squeeze shows in London markets, where borrowing platinum for a month costs 14 percent a year, a sign no one wants to let go of their metal.[2] Banks are storing over 600,000 ounces in US warehouses to dodge possible tariffs from a US probe under Section 232.[2] Above-ground stocks are expected to drop to 3.2 million ounces by the end of 2025, leaving little buffer.[1]
High borrowing costs hurt factories making chemicals, glass, and lab gear, pushing some to buy instead of lease, which could drive prices even higher.[2] The World Platinum Investment Council says Q3 2025 alone had a 179,000 ounce deficit, with demand up 28 percent while supply stayed flat.[1]
Sources:
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://ww.fashionnetwork.com/news/Platinum-hits-17-year-high-as-tight-supply-doubles-price-in-2025,1792918.html
https://nai500.com/blog/2025/11/platinum-prices-hit-15-year-high-what-are-the-driving-forces/
https://goldinvest.de/en/platinum-price-soaring-why-the-wpic-sees-little-relief/
https://www.nasdaq.com/articles/edward-sterck-platinum-deep-deficit-again-will-price-keep-rising-2026
https://www.kitco.com/news/article/2025-11-19/balanced-platinum-market-2026-wont-fix-fundamental-long-term-issues-wpic