Platinum, often overlooked in favor of its glitzier counterparts, gold and silver, has emerged as the standout performer in the precious metals market in 2025. As of late September, platinum prices have soared by over 70% year-to-date, with a remarkable 16% gain in just the past week. The metal now trades at over $1,600 per troy ounce for the first time since April 2013, marking an extraordinary comeback fueled by a perfect storm of macroeconomic pressures and renewed investment interest.
This year's rally signals a significant turning point for a metal that largely trended sideways between $600 and $1,250 for the better part of the past decade. Now, platinum is roaring back into prominence, driven by investor demand, supply constraints, its relative affordability compared to gold, and a resurgence in global jewelry markets, particularly in China and India.
The surge in platinum prices is not occurring in isolation. It is part of a broader trend in precious metals markets, with gold and silver also posting dramatic gains. However, platinum's outperformance in recent weeks can be attributed to what analysts describe as "sympathy rallies," fueled by deeper economic anxieties gripping global markets.
As Erik Norland of the CME Group observes, investors are increasingly looking to metals like platinum, gold, and silver as safe havens amid a global sea of fiscal and monetary uncertainty. Central banks, from the U.S. Federal Reserve to the European Central Bank and beyond, are cutting interest rates even as core inflation remains persistently above target levels in most major economies. Meanwhile, public debt burdens are ballooning across key nations, with the U.S. debt reaching 114% of GDP, Japan exceeding 200%, and China not far behind.“In this context, there appears to be a strong preference on the part of investors to buy assets that central banks can’t print, and among those assets are precious metals like platinum,” Norland explains.
This shift has led to a flight from fiat currencies towards tangible assets. Platinum, which has long been undervalued relative to gold, is now benefiting from a repricing by investors seeking to shield their portfolios from currency devaluation and inflation.
The rally in platinum has also been supported by increased investor activity. According to Commerzbank commodity analyst Barbara Lambrecht, platinum's steep recent price ascent has triggered new inflows into platinum-backed exchange-traded funds (ETFs), as tracked by Bloomberg. However, she cautions that a sustained trend has not yet been firmly established.
In early 2025, speculation about potential U.S. tariffs on platinum sparked a surge in U.S. imports, with over 500,000 ounces flowing into NYMEX inventories by April. These movements coincided with strong physical buying in China and a subsequent tightening of the market."That withdrawing of liquidity from London coincided with physical demand from China and heavy buying on the Shanghai Gold Exchange, which tightened the market and set the scene for the current run-up in platinum prices," noted Rupen Raithatha, Director of Market Research at Johnson Matthey.
Further supporting prices is the increasing visibility and promotional efforts in the consumer market. In the United States, brands are boosting platinum’s appeal through “white gold conversion campaigns,” tapping into a consumer shift toward higher-value long-term purchases.
The downstream surge in platinum hasn’t been restricted to financial markets. According to Platinum Guild International’s (PGI) latest Platinum jewelry Business Review, global demand for platinum jewelry has experienced a strong rebound in 2025, led by a remarkable revival in China.
In the first half of the year, China saw a 151% year-on-year increase in jewelry fabrication, driven by robust wholesale demand and aggressive promotional campaigns. Over 30 Chinese jewelry manufacturers have entered the platinum segment this year, up from fewer than 10 in previous years. Retail sales from PGI’s strategic partners in China rose 19%, and the group's marketing campaigns, such as the Season of Love, helped boost platinum jewelry sales by 21% during the promotional period compared to 2023.
India followed suit with 15% growth among PGI's key partners, even as high gold prices curbed broader jewelry consumption. In the UAE, PGI expanded its retailer network, lifting the region’s platinum store count to 127. The U.S. also showed positive movement, with unit sales increasing modestly while revenue surged into double digits through luxury retail campaigns. However, not all markets matched this trend. Japan’s platinum jewelry market experienced a decline of 3.4% year-on-year in Q2 2025 after 16 consecutive quarters of growth. This was primarily attributed to the sharp rise in platinum prices, which dampened consumer purchasing.
The momentum behind platinum is also underpinned by a worsening supply picture. South Africa, which accounts for roughly 70% of global primary platinum output, has seen mine supply drop by 10% year-on-year in Q1 2025, exacerbated by decades of underinvestment, cost-driven shaft closures, and extreme weather events.
These production issues coincide with platinum entering its third consecutive year in market deficit. According to the World Platinum Investment Council (WPIC), platinum demand in 2025 is expected to outpace supply by 850,000 ounces the largest shortfall in recent memory.“Mine supply, particularly from the largest mining region, has been shrinking over the years and consequently above-ground stocks have collapsed, creating a tight, volatile market,” notes Dominik Sperzel, head of trading at Heraeus Precious Metals. This structural underproduction is unlikely to be resolved in the near term, as the high capital intensity of new PGM projects and investor wariness hinder fresh development.
Despite growing adoption of battery electric vehicles (BEVs), platinum continues to enjoy resilient industrial demand. In automotive applications, platinum is increasingly being substituted for palladium in catalytic converters, particularly in heavy-duty diesel engines, a move that supports demand even amid BEV growth. Additionally, platinum plays a strategic role in hydrogen and fuel cell technologies, suggesting strong long-term demand as economies push toward decarbonization. Notably, the WPIC projects that full-year platinum jewelry demand in 2025 will reach 2.23 million ounces, its highest level since 2015.
While questions remain regarding whether platinum’s recent surge is sustainable, the consensus among experts is that prices are likely to remain elevated above 2024 levels, especially if global macroeconomic instability persists. Short- to medium-term risks include potential fluctuations in the U.S. dollar, short-covering in other precious metals, and sales volatility after major holidays such as China’s Golden Week. Unsold jewelry fabrication could be remelted and returned to the market, placing downward pressure on prices.
Nevertheless, the combination of tight supplies, growing investor interest, promotional success in jewelry markets, and macro-level inflation fears has positioned platinum for a new era of relevance. As Barbara Lambrecht of Commerzbank notes, "The extent of the price increase undoubtedly gives cause for skepticism, but platinum is still very cheap compared to gold in historical terms. This may have sparked buying interest.”With global gold prices now surpassing $3,800 an ounce and expected to exceed $4,200 by mid-2026, platinum's value proposition as a precious and industrial metal is attracting renewed attention, and investors are clearly taking notice.