At the end of last week, the platinum price made a significant jump, ending the trading week at just under 1,100 USD per ounce. This means the precious metal, which is also used in automobile catalytic converters, has already gained about 20% in 2025, even if this may have been noticed by comparatively few investors.

Fundamentally, according to analysts at Saxo Bank, the platinum price is supported by the prospect of the third consecutive annual supply deficit. Reports of increasing demand for platinum bars, coins, and jewelry in China, where people are beginning to view the metal as a cheaper alternative to gold, are also supporting the precious metal, the experts say.

Important Price Mark Surpassed

Observers also see the surpassing of the psychologically important mark of 1,000 USD per ounce as a trigger for speculative follow-up purchases. However, they also point out that strong purchases of physical metal from China were observed around the 950 USD per ounce range, and they expect that the recent sharp rise above 1,000 USD will weaken this demand.

Chinese Imports Rise Significantly

In April, customs data show that the People’s Republic imported 10 tons of platinum, the highest value in a year and a 47% increase from March. According to the World Platinum Investment Council (WPIC), demand for platinum jewelry in China is beginning to rise again after declining over the past decade.

Additionally, there are ongoing concerns regarding the primary platinum supply. Due to the increasing number of electric vehicles in recent years and the consequent decline in demand for catalytic converters, prices for platinum and palladium have been under pressure, reducing the incentive to increase mine production.

However, according to experts from Metals Focus, above-ground inventories still stand at a high 14 months of global demand, which covers the market deficit and limits the upside for platinum and related metals.