The World Platinum Investment Council (WPIC) confirmed that the platinum market remains in a persistent structural deficit, a trend set to continue through 2025.
In Wednesday's report, the group pointed out that supply could fall to its lowest in five years, while demand across investment and jewelry segments continues to climb.
"Platinum has broken out of its post-pandemic trading range to be the top-performing commodity in the first six months of 2025," said WPIC CEO Trevor Raymond. "Looking to the remainder of 2025, platinum's investment case remains compelling, with the platinum market in structural deficit. Platinum's sustained, significant discount relative to gold continues to add to its appeal."
Also Read: Platinum Rally Is Not Enough To Incentivize New Supply
Platinum has been an outstanding performer this year, climbing from $900 per ounce to a ten-year high of $1,450 per ounce in July, outperforming gold and silver in the process. WPIC noted that tightness has been evident since late 2024, with high lease rates and backwardation in the London forward market signaling persistent shortages even as prices rose.
The council's updated forecasts highlight resilient demand across multiple sectors. Investment demand, which surged 660% year-on-year, is expected to grow 2% to 718,000 ounces. Strong Chinese demand is the key driver, as bar and coin purchases could climb as high as 45% in 2025. Meanwhile, exchange-traded funds, which saw net outflows earlier this year, should return to inflows of 100,000 ounces, as investors gauge platinum's discount to gold.
WPIC reported that first-half jewelry consumption reached its highest level since 2015 at 1.2 million ounces, aided by a 32% rise in the second quarter. For the full year, jewelry demand is forecast to increase 11% to 2.23 million ounces, with growth led by China, where demand is projected to jump 42%.
Automotive demand is a point of weakness, with a projection to decline by 3% in 2025, to just over 3 million ounces, yet remain above the five-year average. The most significant 22% decline is expected in industrial demand largely because of a collapse in glass-sector consumption.
In comparison to gold and silver, platinum is a far smaller and more specialized market. Total demand forecast for 2025 is about 224 metric tons, compared to global gold demand that typically exceeds 4,000 metric tons and silver at over 30,000 metric tons annually. Unlike gold, platinum is heavily tied to industrial and automotive uses, making it more cyclical and less of a pure safe-haven asset.
Still, with platinum trading at a sustained discount to gold, Raymond believes investor appetite will continue to strengthen, particularly in Asia.
"The success of Shanghai Platinum Week demonstrates heightened interest in platinum, both as an investment asset and as a critical mineral across multiple value chains," he said.
Price Watch: abrdn Physical Platinum Shares ETF (NYSE:PPLT) is up 50.5% year-to-date.
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