In 2025, platinum has outrun gold and silver with a near 49 percent rally to hit a decade high

FILE PHOTO: Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky/File Photo

Platinum prices rallied on June 19 to touch its highest level in over a decade on fear of supply shortage, outpacing year-till-date gains of gold by rising close to 49 percent in 2025, as traders feared ongoing war between Iran-Israel could disrupt the supply chain and a direct involvement of US in the conflict may increase stakes.

Price of platinum hit $1,348.72 an ounce to its highest level since September 2014 earlier on June 19, higher for a fourth day. This is also poised to be a record quarter for the precious metal, riding on continued robust demand from China. Platinum is used in jewellery, auto catalysts, hydrogen fuel cell, as well as in the chemical and glass industries.

Supplies of platinum have been falling short for a third straight year, further supporting high prices, along with rising jewellery demand across Asia.

So far this year, gold has been surged close to 29 percent on safe haven buying amid rising geopolitical risks and tariff-related uncertainty, but platinum has posted a 49 percent rise, and is set to pip all precious metals for the month as well as for the quarter. Some experts have cited a 'gold fatigue' as the reason given the all-time highs seen on gold in April earlier this year.

"Platinum lease rates are high, so the refineries are not looking to manufacture because the cost is much higher. So demand is coming, but there's not enough supply... above ground inventory is tight," Reuters quoted Brian Lan, managing director at GoldSilver Central on June 19.

The gold to platinum ratio, a comparison of the number of ounces of gold it takes to buy one ounce of platinum has fallen to a three-year low.