Platinum prices rose to their highest point in two years on Friday. This increase was driven by strong demand from China, ongoing supply concerns, and growing interest from investors. The spot price of platinum reached $1,096.40 per ounce, the highest level since May 2023. So far in 2025, platinum prices have increased by 20%.
The price rise was mainly due to heavy physical buying in China. According to official customs data, Chinese imports of platinum climbed to 10 metric tons in April. This was the largest monthly amount in a year and represented a 47% increase compared to March. Investors and consumers in China are showing renewed interest in platinum bars, coins, and jewellery. One reason is that platinum is still cheaper than gold.
Gold prices recently hit a record high of $3,500.05 per ounce. This pushed some investors to choose platinum as a more affordable alternative. The rising interest helped platinum break the $1,000 per ounce mark earlier this week, which encouraged more speculative buying.
The World Platinum Investment Council reported that demand for platinum jewellery in China is rebounding. This reverses a decline that lasted about ten years and strengthens the physical market for platinum.
On the supply side, the platinum group metals (PGM) industry faces difficulties. Primary supply is tightening, and mining profits are shrinking. This is partly because more electric vehicles are being made, and they use fewer PGMs. Due to these factors, the market is expected to have a supply deficit for the third year in a row.
However, there is still a large amount of platinum stored above ground. Current estimates suggest these inventories could meet about 14 months of global demand. This stockpile may prevent prices from rising too quickly in the short term, even though long-term market conditions remain positive.
Meanwhile, palladium, a metal related to platinum, briefly reached a six-month high earlier this week. It then fell below $1,000 per ounce. Palladium’s recent price increase was linked to changes in the automotive sector. Hybrid vehicles, which still use palladium-based catalytic converters, are gaining favor.
As investors adjust their strategies and demand patterns change, platinum is becoming an important metal again in the global precious metals market.
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