Platinum is experiencing a remarkable comeback in 2025: Global investments in bars and coins surged by 660% year-on-year in the second quarter, outperforming gold and silver, while demand for hydrogen applications – from a low base – is expected to increase by 19%. The price hit a ten-year high of $1,450 per ounce in July.
Trevor Raymond, CEO of the World Platinum Investment Council (WPIC), points out that platinum has exited its pandemic-induced trading range and delivered the best commodity performance in the first six months of 2025. A structural market deficit and the persistently significant discount to gold made the metal attractive – especially in China, where demand for jewelry, bars, and coins is growing exceptionally strongly.
On the demand side, the jewelry sector was a key driver: In the first half of the year, it reached 1,201,000 ounces, the highest level since 2015; in the second quarter, growth was 32% to 668,000 ounces. For the full year, an increase of 11% to 2,226,000 ounces is expected. Regionally, China stands out with a projected increase of 42% to 585,000 ounces; for Japan, an increase of 5% is estimated, for Europe 7%, and for North America 8%.
Investment Demand for Platinum with Strong Momentum from China
Investment demand also showed strong momentum from China: The sharp increase in bars and coins in the second quarter boosted global demand in this segment by 55% to 109,000 ounces, with Chinese demand for bars of 500g and above increasing by 33% to 47,000 ounces. However, this and the ETF inflows of the quarter were not enough to offset the inventory outflows from exchanges – after strong build-up phases in the first quarter due to tariff concerns – resulting in a net outflow of investment demand of 64,000 ounces.
For the full year 2025, total investment demand is expected to increase by 2% to 718,000 ounces, thanks to continued strength in China; bars and coins are projected to grow by 45% to 282,000 ounces, and Chinese bars of 500g and above are expected to increase by 15% to 186,000 ounces. ETFs are expected to see a return to net inflows of 100,000 ounces in the second half of the year – driven by improved sentiment following the recent price increase, robust fundamentals, and the persistent discount to gold.
Platinum Demand also Growing in the Emerging Field of Hydrogen Technology
In the emerging field of hydrogen, platinum demand is estimated to reach 49,000 ounces by 2025 – more than 8,000 ounces above the previous year. Despite slower adoption, order books for PEM electrolyzers are filling up, and regulation remains supportive: The US Senate extended the eligibility period for the clean hydrogen tax credit in July, giving project developers two additional years until construction begins; the deadline shifted from early 2026 to January 1, 2028.
In the automotive sector, platinum demand in the second quarter was 769,000 ounces, only 2% below the previous year – despite uncertainty surrounding US tariff policy. For 2025, a decrease of 3% to 3,033,000 ounces is expected, as the production of catalyst-equipped vehicles in both light and heavy-duty segments declines. Nevertheless, automotive demand remains 10% or 281,000 ounces above the five-year average.
Industrially, platinum demand in the second quarter jumped by 41% to 513,000 ounces compared to the previous quarter, but is expected to decline by 22% to 1,901,000 ounces for the full year – primarily due to an anticipated 74% slump in the glass sector to 177,000 ounces. In chemicals, a decrease of 8% to 575,000 ounces is forecast, which overshadows gains in petroleum (+14% to 181,000 ounces), hydrogen (+19% to 49,000 ounces), medical (+4% to 320,000 ounces), and electrical (+2% to 95,000 ounces). For commodity investors, the picture remains clear: platinum combines cyclical recovery with structural scarcity – and the valuation discount to gold provides the catalyst.
