Platinum has been the standout performer among metals, rising from $924 a troy ounce on Jan. 1, 2025 to presently trading at $1,660.
According to the World Platinum Investment Council, the global market is set for an 8,50,000-ounce deficit in 2025, following last year’s 9,68,000-ounce shortfall. Three consecutive years of deficits have slashed above-ground stocks by 46% since 2022, reaching the lowest level in over a decade.
Supply constraints are intensifying: mine output is expected to fall 6%, with South Africa, the world’s largest producer, facing its weakest production in 25 years outside strike or shutdown periods. Recycling is improving but remains below pre-pandemic levels. Platinum’s supply is also structurally price inelastic, with new mines taking nearly a decade to come online.
On the demand side, automotive use remains steady, jewellery demand in China and India is projected to rise 11%, and investment demand is climbing through bar and coin purchases and ETF inflows. Platinum’s deep discount to gold — roughly 40% cheaper than 18-carat gold — is driving both consumer and investor interest. In India, PGI reports a 15% rise in platinum jewellery sales in Q1, with demand spreading beyond metros to smaller towns, especially among younger buyers. Globally, demand is firm in China, Japan, the US, and the Middle East.
