Platinum Price Prediction 2025: What Market Analysts Expect

The platinum market enters 2025 facing a unique intersection of structural challenges and price stabilization forces. After trading within a US$900 to US$1,100 range throughout 2024, the precious metal’s trajectory for the coming year hinges on three critical factors: persistent supply deficits, shifting automotive demand, and the accelerating transition to electric vehicles.

Supply Tightness Continues, But Stockpiles Provide Safety Net

The platinum supply-demand imbalance will intensify in 2025, with producers unable to keep pace with consumption. Total platinum output is forecast to reach just 7.32 million ounces, representing a marginal 0.76 percent increase from 2024’s 7.27 million ounces. This modest growth masks deeper troubles in refined production, which is projected to contract by 1 percent to 5.55 million ounces.

South Africa, historically the world’s largest platinum producer, continues its downward spiral. Industry leaders have begun acknowledging what many observers already knew: the region is entering a phase of structural decline due to a combination of depressed commodity prices and reduced offtake as the automotive sector electrifies. This supply erosion is partially offset by secondary market recycling, which is expected to reach 1.77 million ounces—its highest level since 2021—as the precious metals complex adapts to scarcity.

Despite these headwinds, a third consecutive year of supply shortfall (539,000 ounces) won’t necessarily translate into bullish pricing. The reason: above-ground platinum stockpiles exceed 3.01 million ounces, providing a substantial buffer against price spikes and allowing the market to function without immediate physical constraints.

Demand Landscape Reshapes Around EV Adoption

The platinum price prediction for 2025 must account for a rapidly changing demand picture. Overall consumption is projected to dip by 1 percent to 7.86 million ounces according to the World Platinum Investment Council (WPIC), marking a modest contraction even as certain sectors strengthen.

The automotive industry remains platinum’s largest demand anchor, but its role is fundamentally shifting. While light vehicle sales are expected to grow by 1.7 percent in 2025, the composition of those sales is transforming. Electric vehicles now command 16.7 percent of the projected global market share—a dramatic leap from just 7 percent in 2023—and EVs require no platinum-group metals in their powertrains. This structural headwind will increasingly weigh on catalytic converter demand, historically platinum’s primary use case.

Jewelry consumption offers a growth counterpoint, with the WPIC forecasting a 2 percent uptick to 1.98 million ounces. Investment demand is similarly expected to strengthen, rising 7 percent to 420,000 ounces as investors seek exposure to undervalued precious metals.

However, industrial applications face a sharper contraction. Industrial demand is anticipated to fall 9 percent to 2.22 million ounces, with the steepest decline in glass production. Platinum’s use in glass manufacturing—specifically for liquid-crystal display production—is forecast to plummet 57 percent to just 286,000 ounces. The surge in furnace capacity that drove platinum demand in 2021 has normalized, eliminating the outsized boost the precious metal experienced during that period.

Price Outlook: Stable With Limited Upside

Expert consensus on the platinum price prediction for 2025 coalesces around a relatively narrow range with modest downward bias. CPM Group’s managing partner anticipates prices will hover between US$900 and US$1,000, reflecting the continued supply deficit alongside tepid demand momentum. Heraeus Precious Metals projects a broader but similarly uninspiring corridor of US$850 to US$1,220, suggesting limited conviction about significant price appreciation.

UBS Group has set a midpoint target of US$1,100 for platinum prices during 2025, betting that real asset support from US Federal Reserve rate easing will provide some uplift. However, even this relatively optimistic forecast acknowledges that platinum is likely to underperform gold until higher industrial activity materializes.

The platinum price prediction ultimately reflects a market caught between deflationary structural forces and supportive technical dynamics. Supply constraints provide a price floor, yet demand erosion from EV adoption and industrial contraction limits upside potential. Geopolitical shocks—such as sanctions threats against Russia, historically a significant palladium producer—could create temporary volatility, but the baseline expectation remains one of range-bound trading with minimal directional momentum in 2025.