Platinum outshines gold, silver in 2025’s precious metals rally

commodity

Gold and silver may have glittered this year, but platinum has stolen the spotlight. The precious metal has surged nearly 80 percent in 2025 so far, outpacing gold’s 51 percent and silver’s 68 percent rally, marking one of the strongest years for precious metals in nearly half a century.

Despite the sharp rally, platinum is still trading 28 percent below its record high of $2,250 per ounce, reached in May 2008. In 2023 and 2024, the metal fell 8 percent in each year, while in 2022 it gained a modest 10 percent.

Experts attribute platinum’s stunning rise to a deep structural supply deficit colliding with resurgent industrial and investment demand, setting the stage for a sustained bull run.

“Platinum is just catching up to gold,” said Ritesh Jain, Founder of Pinetree Macro. “Not long ago, platinum was costlier than gold. Now gold trades at almost three times platinum’s price. We’re also seeing substitution in jewellery demand as consumers shift from gold. Supply remains constrained as existing mines fail to ramp up production.”

The rally across metals reflects an uneasy global backdrop marked by policy uncertainty, inflation fears, and a US government shutdown. With the Federal Reserve cutting interest rates, non-yielding assets like precious metals are gaining renewed appeal among investors seeking safe havens.

According to experts, Platinum’s gains have been amplified by severe supply disruptions in South Africa, the world’s largest producer. The country has faced excessive rainfall, power outages, and water shortages, driving output down 24 percent year-on-year during peak months. Chronic underinvestment and persistent energy crises have worsened the shortfall.

According to the World Platinum Investment Council, the global market faces an estimated 850,000-ounce deficit in 2025 — the third consecutive annual shortfall — underscoring an environment of persistent market tightness.

On the demand side, platinum’s appeal continues to grow. Industrial applications, including catalytic converters and emerging green technologies, account for over 70 percent of total usage. China has stepped up imports and boosted jewellery production by 26 percent in Q1, taking advantage of platinum’s steep discount to gold, experts said.

Investment demand has surged nearly 300 percent year-on-year, driven by platinum’s undervaluation and stockpiling amid global trade uncertainties. The automotive sector remains a key consumer, while the metal’s critical role in the hydrogen economy — powering fuel cells and green hydrogen production — positions it at the heart of the global energy transition, experts added.

“Strong investment inflows and Chinese jewellery purchases have drawn down above-ground inventories,” said Ajay Garg, CEO, SMC Global Securities. “Platinum’s growing role in clean energy technologies ensures that the market remains fundamentally tight.”

Outlook: Tight Market, Strong Momentum

Kaveri More, Commodity Research Analyst at Choice Broking, said platinum’s outlook remains robust through 2025 and beyond, with annual supply deficits projected between 500,000 and 850,000 ounces. Demand is expected to stay strong, supported by stricter global emission standards, hydrogen fuel cell adoption, and China’s sustained consumption.

“While South African supply is gradually recovering, the pace is slow,” More noted. “Technical charts now target $1,753 on the LME, signaling continued strength. In contrast, palladium is expected to move from a deficit in 2025–26 to a surplus by 2027, while platinum’s structural deficits secure its positive long-term narrative.”

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