Platinum is gradually taking center stage as gold prices keep on rising. This increase is actually following gold’s remarkable rally, which has experienced a 27% rise this year. And in 2024, gold’s cost grew by more than 30% to about $1,250 per ounce.
A recent analysis by the Bank of America (BofA) shows that the increase in platinum isn’t just the result of the yellow metal’s momentum. It’s actually driven by a shortage in supply and new, freshly formed demand. And one country leading to this dynamic is China, because its customers became particularly interested in platinum pieces.
The demand for platinum on the Chinese market is increasing after a long period of relatively low interest, as BofA analysts say. Just two months ago, the nation imported 11.5 metric tons of the white metal, an unprecedented number for a single month, and this is taking into account that China has long been one of the largest consumers of gold in the world. The growing gold prices drive jewelers to diversify their choices of metal, which naturally influences the whole industry.
According to market analysts, even a measly 1% change in the demand from gold to platinum might significantly affect the market, as this percentage would double the predicted shortage of platinum to 1.65 million ounces.
As you know, platinum has been used less frequently in jewelry making than gold or silver. But actually the white metal is applied not only in jewelry but also in electronics, car manufacturing, and other industries.
The trend is similar to other precious metal markets. In 2025, silver prices have risen by about 1/4, however, the decline in solar panel production has somewhat offset these gains.
The unpredictability of a geopolitical situation in different countries, for example, the Ukrainian war and Trump’s second term, has intensified the gold trend. As a result, gold broke the $3,510 per ounce rate for the first time ever two months ago.
Gold is still a safe-haven asset, but now the main attention is shifting to platinum. In the current market situation, it provides jewelers with a less expensive alternative for gold as well as a great investment option backed up by scarcity. Thus, platinum makes a strong case for itself in a market where, as the saying goes, “not everything that glitters is made of gold.”
