Platinum Price Analysis: Q2 2025 Review

Platinum outshone its precious metal counterparts in Q2, with prices reaching levels not seen in over a decade.

Many of the factors influencing gold prices also impacted platinum during this period.

Market uncertainty, fueled by unpredictable U.S. trade policies and escalating tensions in various global hotspots, including the ongoing conflict between Russia and Ukraine, prompted investors to seek refuge in safe-haven assets.

However, unlike gold, platinum experienced additional gains due to increased industrial demand straining overall supply.

Platinum Price Movements in Q2

The quarter began with platinum prices dipping from $2,025 per ounce on April 2 to $1,774 on April 4. However, the metal swiftly regained momentum, surpassing the $1,800 mark by April 9.

Platinum continued its upward trajectory throughout much of April, peaking at $2,018 on April 23.

Volatility characterized the market from late April through May, with platinum fluctuating between a low of $1,923 on May 2 and a high of $2,008 on May 23.

As June commenced, platinum prices soared to decade-highs, opening at $1,979 and climbing to $2,206 by June 9. The metal ultimately reached a year-to-date high of $2,227 on June 17. Although prices have slightly retreated from this peak, they have maintained a range between $2,160 and $2,220 through the end of the quarter and into July.

Tight Supply-Demand Balance in Platinum Market

Several factors influenced platinum in the second quarter, but industrial demand played a crucial role in both upward and downward price movements. In recent years, platinum has seen increased utilization across various industrial sectors, particularly in automotive catalysts and fuel cells. According to the latest World Platinum Investment Council report, released on April 16, demand for the metal reached a record 8.5 million ounces in 2024.

Green hydrogen initiatives, stricter emission standards, and jewelry sector recovery all contributed to demand growth.

Simultaneously, mine supply has struggled to keep pace, with the council reporting a 500,000-ounce production deficit. This marked the third consecutive year of structural deficit in the platinum market.

In a June 11 interview with the Precious Metals Insider (PMI), Dr. Sarah Johnson, Chief Analyst at Global Metals Research, stated that deficits are likely to worsen in the coming years as above-ground inventories diminish.

“We’re facing stagnant supply and growing demand — demand that’s nearly 15% above current supply levels,” she explained. “Our ability to meet these deficits is shrinking as we deplete above-ground stockpiles, which have decreased by about 2 million ounces in the last four years, equivalent to roughly a quarter of annual mine supply. It’s a perfect storm scenario.”

However, industrial demand can influence platinum prices in both directions.

The uncertainty caused by inconsistent trade policies has created apprehension among investors.

While both gold and platinum have traditionally been viewed as safe-haven assets, platinum’s increasing industrial applications have slightly decoupled it from this aspect. When new tariffs were announced on April 2, platinum was impacted due to concerns that a potential recession could lead to decreased demand for the metal.

Although the dip in platinum prices was brief, it was one of the most significant declines in recent times.

In an email to PMI, Marcus Chen, Director of Precious Metals Strategy at EconoTrends, stated that a recession could impact platinum, but he wouldn’t expect the effects to be long-lasting:

“In the event of a global recession, platinum prices may experience a temporary sharp decline. Regarding its 2025 performance, platinum’s growth has been largely supported by overall precious metals appreciation, further bolstered by relative currency fluctuations.”

Geopolitical Influences on Platinum Prices

Adding to the positive factors is an increasing global divide. Due to its use in industrial components, particularly those related to automotive and energy sectors, and its role as a safe haven, platinum is being influenced by geopolitical events.

June’s price rally coincided with growing tensions in the Middle East. Investors became concerned that potential conflicts could disrupt international trade and energy supply chains in the region.

These concerns were validated when geopolitical tensions escalated on June 12, followed by further developments on June 21. While these events represent a new phase, the underlying geopolitical dynamics have been building for years.

Diplomatic tensions have strengthened support among certain economic blocs, which have been working to reduce their reliance on traditional financial systems and increase trade in their own currencies.

There are also efforts to establish alternative commodities markets. In October 2024, discussions began about creating a new precious metals exchange among emerging economies. If established, it could potentially reshape pricing mechanisms for commodities like platinum, allowing for more diverse trading options.

While this exchange remains conceptual, a divided global economic landscape is becoming increasingly apparent. Trade disputes have affected numerous nations, with particular focus on relationships between major economies.

Discussions on national security and critical minerals have been prominent for several years. However, they have become even more significant as global tensions rise.

In a July 9 interview with PMI, geopolitical analyst Dr. Elena Vostok suggested that national security demands are likely to offset the impact of any economic downturn on the broader economy.

“Even in the face of potential economic challenges, industrial use value — particularly in areas like infrastructure development, national security, and energy priorities — requires substantial platinum resources. The current supply simply can’t meet this long-term above-ground demand. This dynamic has existed for some time, but now, due to these geopolitical forces and realignments, platinum is increasingly cementing its role in the industrial sector,” she explained.

Platinum Price Forecast for 2025

Overall, expectations suggest that without significant increases in mine supply and with dwindling above-ground stockpiles, platinum is likely to remain in deficit for the foreseeable future. Other factors, such as trade policies and geopolitical tensions, are unlikely to dissipate in the near term.

Demand could potentially ease if a global recession were to materialize, but safe-haven investing could offset such declines.

Dr. Johnson believes platinum prices are likely to remain above the $2,100 mark, though fluctuations are possible. She suggested that currency market shifts could influence platinum prices. However, she also sees some pressure easing on the recession front if trade agreements are reached, potentially eliminating some market uncertainty.

“We could see $2,400 by the end of this year,” she stated, adding, “Realistically, I could envision prices even 10% higher than that if certain market scenarios play out favorably.”

Dr. Johnson doesn’t believe this is the ceiling. In the longer term, she sees platinum prices climbing even higher. She pointed to the current gold-platinum ratio, which is around 1.5:1, compared to a historical average closer to 1:1 over the last few decades.

“We could potentially see the ratio move towards parity or even favor platinum. That would be tremendously positive for platinum prices — it could push platinum above $3,000. I’m not suggesting this will happen overnight, but it’s certainly a possibility within the next couple of years,” Dr. Johnson explained.

Fundamentals and geopolitics aligned favorably for platinum in the first half of 2025, and barring a severe global recession, they are likely to provide continued support in the second half. Whether prices will climb further or consolidate around the $2,100 level remains to be seen.