How ‘Gold Fatigue’ Has Helped Drive Platinum Prices up 44% This Year
The comments below are an edited and abridged synopsis of an article by Myra P. Saefong
Platinum Market Outlook: Supply Deficit And Shifting Demand Fuel Price Surge
The platinum market outlook for 2025 has grown increasingly bullish, as the precious metal continues to outperform its peers by a wide margin. Year-to-date, platinum has soared 44%, reaching its highest level since 2014. Several key drivers—tight supply, shifting jewelry trends, and investor rotation away from gold—are all converging to reshape the market’s future.
One of the most significant forces behind the positive platinum market outlook is a deepening supply deficit. According to the World Platinum Investment Council (WPIC), the global platinum market will face a shortfall of nearly one million ounces for the third consecutive year. In an annual market that produces just eight million ounces, this represents a significant structural imbalance. Above-ground reserves have been tapped to help meet demand, but these are now at critically low levels—roughly only three months’ worth of global consumption.
Another factor fuelling optimism in the platinum market outlook is a growing sense of “gold fatigue.” With gold prices up 29% this year and surpassing $3,300/oz, investors and consumers alike are seeking more affordable alternatives. Platinum, still well below its 2014 peak of $1,500 and gold’s current levels, is emerging as a value-driven substitute.
China plays a pivotal role in this dynamic. Gold jewelry sales in the country dropped 32% year-over-year in Q1 2025, while platinum jewelry fabrication jumped 26% in the same period. Jewelers are actively switching to platinum to appeal to price-sensitive customers, and platinum is also viewed favourably in China as both an adornment and an investment asset. In April 2025, China imported 11.5 metric tons of platinum—the highest in a year—highlighting the momentum.
Adding to the bullish platinum market outlook is rising interest in platinum as a strategic asset. With its use in hydrogen fuel cells, catalytic converters, and clean energy technologies, platinum is increasingly seen as both an industrial metal and a store of value. Though recycling offers potential relief, only about 25% of platinum supply currently comes from recycled materials. Industry experts suggest this figure could double with better recycling infrastructure, but progress remains slow.
Despite strong fundamentals, not everyone agrees that platinum is in short supply. The CPM Group argues that the supply-demand balance is misunderstood, pointing to a 2024 surplus of 26,000 ounces and forecasting another surplus in 2025. Their analysis excludes investment demand, which they say skews perceptions of scarcity. However, investment activity continues to increase, complicating the picture.
Ultimately, the platinum market outlook remains compelling. Prices are still far from historic highs, investor sentiment is turning positive, and supply-side constraints are tightening. As Vaibhav Agarwal of Indxx notes, platinum represents a “potential value play” for those looking to diversify into precious metals. With options ranging from physical bars to ETFs and mining equities, investors have multiple ways to participate in what could be a defining chapter for platinum in the years ahead.
Note from BMG
We read with interest the recent article on the Platinum Market Outlook and the role that so-called “gold fatigue” has played in driving investor attention toward other precious metals. While we acknowledge the growing enthusiasm around platinum’s recent price surge and its emerging applications, it’s important to recognize that gold fatigue is not a new phenomenon.
Throughout history, investors have cycled in and out of gold, often in response to short-term market dynamics or the allure of alternative assets. Yet time and again, gold has reaffirmed its long-term value. For centuries, through economic upheaval, currency devaluations, and geopolitical crises, gold has remained a reliable store of wealth and a true safe haven.
At BMG, we believe that while other metals like platinum have strategic value and may offer strong cyclical opportunities, gold continues to serve a distinct and timeless role in wealth preservation. Its resilience, liquidity, and historical performance cannot be overlooked—especially in an increasingly uncertain financial landscape.
As always, we encourage investors to think long term and to maintain a diversified position that includes gold as a foundational asset.