Platinum’s price is showing strong signs of rising sharply, and a big reason for this is the shortage in supply. The amount of newly mined platinum is expected to drop significantly this year, with estimates pointing to a 6% fall in output. This decline reverses the growth seen last year and creates a tighter market where demand outpaces what’s available.
This supply squeeze comes at a time when demand remains solid, especially from China where jewelry sales and investment interest are stronger than expected. Even though industrial demand might dip slightly due to economic factors, other uses like automotive catalytic converters and emerging hydrogen fuel cell technologies continue to support platinum’s appeal. These applications require platinum for their efficiency and environmental benefits, keeping industrial consumption steady.
The combination of shrinking supply and steady or growing demand has led experts to forecast that platinum prices could reach around $1,200 per ounce or even higher by mid-2025. In fact, prices have already surged over 40% so far this year as investors react to these market dynamics.
Another factor pushing prices up is investor sentiment linked to broader economic concerns. With worries about the US economy’s outlook and credit rating downgrades due to high debt levels, investors are turning more towards safe-haven assets like precious metals—including platinum—which adds upward pressure on its price.
Jewelry buyers are also responding positively; as prices rise sharply—up nearly 45% in 2025 alone—customers feel more confident purchasing platinum pieces not just for style but also as an investment that may appreciate further over time.
In short, the main driver behind the potential surge in platinum’s price is its tightening supply amid sustained demand from both industry users and investors alike. This imbalance creates a market environment where higher prices become almost inevitable until new sources or substitutes can ease the shortage.