Possible tipping point platinum market 2025

For years, platinum has been undervalued compared to gold and silver. Partly due to declining industrial demand, but now a potential tipping point is in sight. What’s going on? You can read about it in this knowledge base article.

Industry dependence

Platinum, like silver, more so than gold, is dependent on industrial demand—especially from the automotive industry as a component in catalytic converters. Due to the shift to electric vehicles, demand for platinum has dropped significantly, and given the planned energy transition, investors have heavily penalized the precious metal. Platinum jewelry has also been less popular.

The low platinum prices have also led to mine closures, and in South Africa, heavy rainfall disrupted platinum production. This has resulted in a decrease in available platinum supply.

Declining demand

You might think that with declining demand, a reduced supply wouldn’t be a problem—but it’s more complex than that. The energy transition is progressing more slowly than expected, and many car manufacturers have completely run down their inventories. Additionally, demand for platinum jewelry, especially in China, is increasing.

The result is that, despite the limited demand, the market has seen a platinum shortage for three consecutive years. And since scaled-back production cannot easily ramp back up, and demand may continue to rise, this shortage could grow.

Alternative to gold

The high gold price has made platinum an attractive alternative in the Chinese jewelry market. More affordable than gold and yet more exclusive than silver, this has led to an increase in Chinese platinum imports. Since the platinum market is 16 times smaller than the gold market, even a relatively small rise in demand can have a significant impact on the available platinum supply—and therefore on the price.

Due to these developments, platinum appears to be an interesting investment not just for jewelers, but also for investors. With ongoing geopolitical tensions, economic concerns remain, and thus there is a need for a safe haven. However, silver and gold are historically high in price, and while a safe investment may not be a profitable one, platinum carries a bit more risk but also more growth potential—especially if economic uncertainty persists.

Historical prices over 25 years

If you look at the historical price chart for platinum over the past 25 years, a clear trend shift becomes visible. After the 2008 financial crisis, platinum prices gradually declined between 2011 and 2018, and then remained more or less stable. However, since the first half of 2025, it is clearly visible that the price is rising more than in recent years.

Whether this price increase will continue remains uncertain, and at The Silver Mountain we are not allowed—and do not wish—to offer investment advice. Still, it can be concluded that the rising industrial demand combined with relatively small production capacity makes the platinum market interesting. At least more interesting than in recent years, especially now that geopolitical uncertainties appear likely to persist.

Is the platinum market at a tipping point in 2025?

It may still be a bit too early to give a definitive answer, but there are at least signs that the platinum market could be changing. We will, of course, continue to follow the news in the coming months and update this article as needed.

Interested in buying platinum? The Silver Mountain offers a wide selection of platinum coins and bars. You can, of course, also choose to combine your order with platinum, silver, or gold.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.