Platinum prices climbed to their highest level in two years on Friday, driven by a surge in Chinese imports, persistent supply concerns, and increasing investor interest in the metal. Spot platinum touched $1,096.40 per ounce—the highest since May 2023—registering a 20% gain so far in 2025.
The rally was sparked by strong physical buying from China, where imports rose to 10 metric tons in April, the highest monthly figure in a year and a 47% increase from March, according to official customs data. The metal has found new traction among investors and consumers in China, particularly for bars, coins, and jewellery, as platinum remains relatively affordable compared to gold.
As gold prices recently scaled an all-time high of $3,500.05 per ounce, some investors have turned to platinum as a more economical alternative. This trend has helped fuel speculative momentum, especially after platinum crossed the psychological threshold of $1,000 per ounce earlier in the week.
The World Platinum Investment Council has noted a rebound in platinum jewellery demand in China, reversing a decade-long decline and adding strength to the physical market.
On the supply side, the platinum group metals (PGM) sector continues to face challenges. With primary supply tightening and mining margins under pressure—partly due to the shift toward electric vehicles, which use fewer PGMs—the market is expected to record a third consecutive annual deficit.
However, above-ground platinum inventories remain substantial, currently estimated to cover around 14 months of global demand. This could moderate further price surges in the near term, even as long-term fundamentals remain supportive.
Meanwhile, palladium, a closely related metal, briefly hit a six-month high earlier in the week before easing below the $1,000 mark. Its recent gains were influenced by shifting automotive strategies favouring hybrid vehicles, which continue to rely on palladium-based catalytic converters.
As investor strategies evolve and demand dynamics shift, platinum is once again emerging as a key player in the global precious metals market.
