Platinum prices have risen more than 110% this year, far outpacing the rise of gold, which has seen an increase of approximately 65% in the same period, according to an analysis by China Economic Net (CEN).
“After years of lethargy, platinum has returned to the spotlight this year with impressive gains”, highlighted the financial publication on its website.
The data shows that on December 22, spot platinum – the current, real-time price for immediate delivery – rose to more than 2,000 US dollars (1,700 euros) per ounce during the session, reaching the highest level since late July 2008.
“The current price of platinum is still less than half that of gold, but its appreciation since the beginning of the year has far exceeded that of the latter” ore, highlights Liu Qi, analyst at China Economic.
A report from the World Platinum Investment Council (WPIC) released last Friday states that “platinum left its post-pandemic trading range to become one of the best performing ‘commodities’ of the year”.
The price of this ore “rose drastically from May and, in October, reached a 14-year peak, reaching 1,736 dollars per ounce (1,474 euros), continuing to rise since then”, adds the institute.
Liu attributes the sharp rise to changes in both supply and demand. “On the one hand, supply is contracting,” he said.
South Africa, which accounts for more than 70% of global platinum production, faces production constraints due to aging mines, persistent energy deficits and extreme weather conditions.
Data released by WPIC in November indicated that the platinum market will record a significant deficit for the third consecutive year in 2025, with an estimated shortage of 22 tonnes.
“On the other hand, demand is growing,” explained Liu. Known as the “industrial vitamin”, platinum is finding new value in the global transition to green energy. The metal plays a crucial role in hydrogen production, fuel cells and other green technologies.
However, high gold prices, which reached a record peak above 4,380 US dollars (3,719 euros) per ounce in October, have also increased platinum’s appeal.
“As prices of jewelry and gold bars have risen, the more cost-effective platinum has become an attractive alternative, leading to significant growth in demand,” Liu added.
WPIC forecasts support this trend. The analyst firm projects that global demand for platinum jewelry will increase 7% year-on-year in 2025 to 67 tonnes, the highest level since 2018. Investment demand is expected to grow 6% to 23 tonnes.
It should be noted that the Chinese market has become one of the main drivers of investment demand. The WPIC report estimates that total global demand for platinum bars and coins will soar 47% in 2025 to 16 tonnes, a four-year high. Of this total, the Chinese market is expected to be responsible for 13 tons.
“Despite the recovery, the price of platinum remains historically undervalued and significantly below the price of gold, and recent price developments suggest a period of healthy consolidation, supported by solid fundamentals”, points out the latest WPIC report.