Platinum is showing signs of a strong comeback, and experts believe its price surge in 2025 could set the stage for it to reach as high as $2,500 by 2027. Several key factors are driving this optimistic outlook.
First, platinum is facing persistent supply shortages. From 2025 through 2029, the market is expected to experience annual deficits averaging around 727,000 ounces. This means demand will consistently outpace supply by about 9%, which puts upward pressure on prices. These deficits have been building since at least 2023 and show no sign of easing soon. The physical availability of platinum above ground is shrinking due to these ongoing shortfalls.
Second, demand for platinum is growing in important sectors. China’s jewelry market has been expanding its appetite for platinum jewelry, adding new sources of demand beyond traditional industrial uses like catalytic converters in vehicles. At the same time, shifts in global economic dynamics—such as de-dollarization trends—are making precious metals like platinum more attractive to investors looking for alternatives to gold and silver.
Third, despite a slowdown or uncertainty in global growth across many economies (with over two-thirds seeing reduced growth forecasts), platinum prices have bucked this trend by rising roughly one-third year-to-date in 2025 alone. This resilience highlights how tight supply-demand fundamentals can outweigh broader economic headwinds when it comes to commodity pricing.
Looking ahead into the next few years:
– By mid-2025, prices are forecasted to climb above $1,400 per ounce.
– By mid-2026 they could reach around $1,500.
– Beyond that point toward 2027 and beyond into the early 2030s, models suggest a much steeper rise driven by continued deficits and increasing investment interest could push prices toward or even beyond $2,500 per ounce.
This trajectory reflects not only fundamental scarcity but also investor behavior responding to geopolitical uncertainties and shifting monetary policies worldwide that favor precious metals with industrial utility like platinum.
In essence: ongoing supply shortages combined with rising demand from both industry and investors create a powerful setup for platinum’s price surge over the next few years — potentially making it one of the standout commodities leading up to 2030 with targets well above current levels.