Gold Or Silver? No, Platinum Is Shining The Most With 50% Returns In 2025 So Far
Beyond jewellery and investment, platinum's industrial story may prove just as powerful.
Gold and silver may have dazzled investors this year, with bullion up 38% and silver rallying 41%, but it's platinum that has quietly stolen the show. The precious metal has surged 50% year-to-date, including a staggering 28% leap in June, its biggest monthly jump in decades.
The rally, according to the World Platinum Investment Council, may still have legs. The global platinum market is forecast to register a deficit of 8,50,000 ounces in 2025, following a 9,68,000-ounce shortfall last year. Three straight years of deficits have already eaten into above-ground stocks, slashing inventories by 46% since the end of 2022 to their lowest in over a decade.
The squeeze is coming from both sides of the equation. Mine output is set to fall 6% this year, with South Africa — the world's largest producer — heading for its weakest production in a quarter-century outside of strike or shutdown years. Recycling is inching higher but remains well below pre-pandemic levels. And as WPIC points out, platinum supply is structurally price inelastic: even when prices rise, it can take nearly a decade for new mines to come onstream.
Demand, meanwhile, has proven remarkably resilient. Automotive use is holding steady despite tariffs and the march towards electrification. Jewellery demand is expected to rise 11% this year, with buyers in China and India pivoting from costlier gold to more affordable platinum. Investment demand is also ticking up, led by strong bar and coin buying in China and steady ETF inflows. WPIC stresses that platinum's deep discount to gold continues to bolster both jewellery and investment flows.
That discount is precisely what's resonating with consumers. "Platinum is at such a fantastic price right now," said Vaishali Banerjee of Platinum Guild International, while speaking to to CNBC-TV18. "It's seen a very strong surge since the beginning of the year, but it’s still almost 40% cheaper than 18-carat gold—and this is 950 platinum. So it's a unique opportunity."
PGI reports platinum jewellery sales in India rose 15% in the April–June quarter, with demand spreading from metros into smaller towns, particularly among younger buyers. Globally too, demand is firming across China, Japan, the US and the Middle East.
Brokerage SAMCO Securities echoes the bullish case, attributing the surge to South African production disruptions, younger buyers shifting into platinum jewellery, and ETF inflows as investors reassess its undervaluation relative to gold. The firm also points out that platinum once traded at over $2,200/oz in 2008, higher than gold, before falling deeply out of favour. Today, the gap offers a contrarian opportunity.
Beyond jewellery and investment, platinum's industrial story may prove just as powerful. It remains indispensable in catalytic converters, hydrogen fuel cells and emerging clean-tech applications. "As hydrogen adoption accelerates, platinum demand is set to rise," SAMCO notes, adding that platinum could be one of the real "pick and shovel" plays of this decade.
While gold grabs headlines, platinum may just be the underappreciated metal shaping the commodity story of 2025 and, perhaps, the years ahead.
