Beyond gold and silver: Platinum steals the spotlight with 140% surge in 2025

While gold and silver have commanded investor attention for much of the year, platinum has emerged as the standout performer in the precious metals segment. The metal is currently trading around $2,182 per ounce, marking a nearly 140% year-to-date gain and a 48% rise over the past three months. This sharp rally has been driven by a combination of constrained supply, strong investment inflows and shifting demand dynamics, which have elevated platinum from a value alternative to a leading asset in its own right.

Platinum futures have staged a remarkable surge, culminating in a nine-day winning streak that pushed prices to a record high of $2,323 per ounce before settling slightly lower at $2,320. In the latest session alone, platinum jumped $171, or nearly 8%, marking its first all-time high of the year and one of the sharpest short-term moves in the precious metals space.

The scale of the rally is striking. Over nine consecutive positive sessions, platinum prices have surged nearly 39%, reviving a metal that had long remained in the shadow of gold and silver. At the start of 2025, platinum was trading below $1,000 per ounce and attracted limited investor interest. Prices decisively crossed the $1,000 mark only in mid-May, setting the stage for the powerful breakout that followed.

What’s behind the platinum rally

A key driver of platinum’s rise is a severe and persistent supply deficit, with the market expected to post a third consecutive annual shortfall. Ongoing operational challenges in South Africa, the world’s largest producer, have kept inventories tight and raised concerns over long-term availability. Higher borrowing costs for platinum have also altered traditional leasing patterns, prompting investors to reassess the metal’s role in portfolios.

Investment demand has strengthened significantly, with both retail and institutional investors seeking diversification beyond gold and silver. Exchange-traded funds (ETFs) have seen strong inflows, while portfolio managers increasingly favour platinum for its scarcity and resilience. Investor participation has reinforced the rally and driven a sharp re-rating relative to other precious metals.

Industrial and EV demand

Unlike gold, platinum’s rally is underpinned by a distinct mix of supply constraints and structural industrial demand. Slower-than-expected global adoption of electric vehicles has supported demand for platinum-rich catalytic converters used in internal combustion engines. Policy shifts, including the European Union’s move to ease restrictions on new petrol and diesel car sales beyond 2035, have further buoyed sentiment.

Trade dynamics have also played a role. Exports to China remain strong, while the launch of platinum futures on the Guangzhou Futures Exchange has broadened market participation. Tightness in the London market—partly due to banks holding platinum in the US to hedge tariff risks—has added to supply pressures.

Supply versus demand

With global supply heavily concentrated in South Africa, the market remains highly sensitive to disruptions. On the demand side, rising industrial use in China, particularly in chemical processing, along with renewed interest from automakers and platinum’s growing role in hydrogen fuel-cell technologies, has reinforced bullish momentum.
Compared with other asset classes, platinum’s performance in 2025 stands out. While India’s Nifty 50 has gained a modest 10.69%, platinum’s 140% surge has far outpaced silver, which has roughly doubled, and gold, which is up about 70%. This exceptional outperformance has significantly raised platinum’s profile among investors seeking alternatives to traditional safe-haven assets.