Platinum outpaces gold, silver and broader asset classes in 2025

Platinum has broken out of its post-pandemic trading range to be the top-performing commodity in the first six months of 2025, outpacing gold, silver and broader asset classes, according to World Platinum Investment Council.

Key information, with supply and demand developments in the platinum market, is highlighted below: 

• Third consecutive annual deficit reconfirmed, expected at 850 koz in 2025
• Forecast full year 2025 total supply to fall by 3% to 7,027 koz; total demand projected to reduce 371 koz to 7,877 koz
• Platinum jewellery demand to rise 11% to 2,226 koz this year, its highest level since 2018, as China growth accelerates
• Continued growth in investment demand, up 2% in 2025 to 718 koz, with strong bar and coin demand performance in China
• Forecast decline in automotive demand modest given tariff-related market uncertainty; projected to contract 3% to 3,033 koz for full year 2025
• Industrial demand to fall to 1,901 koz this year as substantive, cyclical glass capacity expansions reduce

WPIC Updated full year 2025 forecast
The forecast contraction in total supply will result in its lowest level in five years, with mining supply forecast to fall 6% to 5,426 koz, also its lowest level in five years.

Recycling supply is forecast to grow 6% to 1,601 koz, although it will remain depressed compared to historic levels.

The forecast reduction in total demand is principally due to the absence of substantive, cyclical glass capacity expansions this year.
The platinum market is expected to record its third consecutive significant annual deficit in 2025, projected at 850 koz, a downward adjustment of 116 koz from the previous forecast. Above ground stocks are forecast to decline by 22% to 2,978 koz, resulting in four and a half months of demand cover.
Q2 snapshot
Total supply eased 4% year-on-year to 1,876 koz in Q2’25. Total mining supply fell 8% year-on-year to 1,453 koz. Global recycling continued to show indications of a recovery during Q2’25, up 14% quarter-on-quarter and 12% year-on-year.
Total demand in Q2’25 fell 22% year-on-year to 1,886 koz, impacted by a 317 koz reduction in stocks held by exchanges during the quarter as tariff-related concerns eased temporarily and inventory levels unwound.

This was only partially offset by strong quarter-on-quarter growth in jewellery demand (+135 koz, 25%), bar and coin demand (+39 koz, 55%) and demand for bars of or above 500g in China (+12 koz, 33%). Industrial demand was weaker year-on-year (-164 koz, 24%), while automotive demand remained flat on the previous quarter, but fell 2% year-on-year.
Overall, platinum supply and demand were effectively in balance for the quarter, recording an 11 koz deficit.
Demand segment round-up
Jewellery demand growth exceeding expectations: In H1’25 platinum jewellery demand was the highest level since H1’15 at 1,201 koz. In Q2’25, platinum jewellery demand grew 32% year-on-year to 668 koz.
For full year 2025, jewellery demand is expected to exceed the recovery seen in 2024, increasing by 11% year-on-year to 2,226 koz, as platinum continues to benefit from its price discount relative to gold. This will represent the highest global total since 2018.

Forecast growth in China is especially noteworthy, up 42% year-on-year to 585 koz, while Japan will see a healthy 5% gain.

European and North American demand is forecast to grow 7% and 8%, respectively, to reach record highs. Despite robust domestic demand, total demand in India is due to soften, falling 10% year-on-year to 240 koz because of reduced exports amid US tariff uncertainty.
In Q2’25, a dramatic surge in China bar and coin demand elevated total bar and coin to 109 koz, up 55% quarter-on-quarter, while demand for bars of or above 500g in China grew 33% quarter-on-quarter to 47 koz. However, neither this growth, nor ETF inflows during the quarter, were sufficient to offset the impact caused by the outflow of stocks held by exchanges. As a result, investment demand saw a net outflow of 64 koz in Q2’25.
For full year 2025, total investment demand is forecast to grow 2% to 718 koz on continued strong investment demand in China. Bar and coin growth here will offset weakness in other regions, with total bar and coin demand rising 45% to 282 koz year-on-year. Meanwhile, demand for bars of or above 500g in China will rise 15% year on year to 186 koz.
Driven by improved investor sentiment following the recent price surge, robust underlying fundamentals and platinum’s sustained discount to gold, ETFs are expected to see a resumption of net inflows during the second half of the year to reach 100 koz. Exchange stocks are expected to see net inflows of 150 koz for full year 2025.  
Automotive demand for platinum of 769 koz was down 2% year-on-year in Q2’25, a slight reduction, especially when considered against the uncertainty caused by changing US tariff policy.
The full year outlook sees global automotive demand falling 3% to 3,033 koz as production of catalysed vehicles declines in both light and heavy-duty segments. Nevertheless, automotive demand will be 10% (281 koz) above the prior five-year average.
In Q2’25 industrial platinum demand grew by 41% quarter-on-quarter to 513 koz. This followed an especially weak prior quarter, largely caused by negative net glass demand due to plant closures in Japan during the quarter.
Industrial demand is forecast to fall by 22% year-on-year in full year 2025 to 1,901 koz, largely due to anticipated reductions in glass demand which is expected to decline by 74% to 177 koz. Chemical demand is expected to fall by 8% to 575 koz, offsetting gains in petroleum (+14% to 181 koz), hydrogen (+19% to 49 koz), medical (+4% to 320 koz) and electrical (+2% to 95 koz).