Gold and silver have made headlines this year with impressive gains of 38% and 43%, respectively, but it is platinum that has surprised market observers by emerging as 2025’s leading precious metal. Prices for platinum have soared nearly 57% year-to-date, including a remarkable 28% jump in June, marking its largest monthly increase in decades, according to reports from ET.
The World Platinum Investment Council (WPIC) projects that this upward trend may continue, forecasting a global platinum deficit of 850,000 ounces for the current year. This follows a significant shortfall of 968,000 ounces in 2024. Persistent annual deficits have led to a dramatic reduction in above-ground platinum stocks, which have decreased by 46% since the end of 2022, resulting in inventories hitting their lowest levels in over a decade.
Supply side pressures are expected to remain strong, with mine output anticipated to drop by 6% in 2025. South Africa, a major source of platinum, is projected to experience its weakest production levels in 25 years, excluding periods affected by strikes or shutdowns.
On the demand front, automotive utilization of platinum remains robust despite challenges such as tariffs and the growing emphasis on electric vehicles. Additionally, jewelry demand is forecasted to grow by 11%, spurred by consumers in China and India searching for more affordable alternatives to gold.
Investment interest in platinum also appears to be increasing, particularly in forms such as bars, coins, and exchange-traded funds (ETFs). The WPIC notes that platinum’s significant discount compared to gold is bolstering both jewelry and investment flows. According to brokerage SAMCO Securities, factors such as production disruptions, a growing preference for platinum jewelry among younger consumers, and rising ETF inflows are significant drivers behind this metal’s impressive performance.
