The analyst named the reasons for the increase in platinum prices

A key factor in platinum's growth is a structural shortage amid limited supply. Igor Rastorguev, a leading analyst at AMarkets, told Izvestia on December 25.

According to him, the global platinum market has been experiencing a shortage for the third year in a row, which reached 692,000 ounces in 2025, about 9% of annual demand. Global reserves of the metal decreased to 2.5 million ounces, which is equivalent to less than five months of consumption.

"South Africa, which controls about 70% of global production, has faced energy challenges and a 6% reduction in production this year. Russia, which ranks second with a share of about 10%, on the contrary, remains the only major producer to increase output in 2025," the expert explained.

He added that Norilsk Nickel plans to produce 662-675 thousand ounces in 2025. At the same time, consumption in the automotive industry has remained above average over the past five years, and the easing of restrictions on internal combustion engines in the European Union (EU) until 2035 supports demand for platinum for catalysts. Additional growth is provided by China and the investment sector, where sales of bullion and coins increased by 47%.

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The analytical forecasts of the World Platinum Investment Council maintain a deficit at least until 2029, in the range of 620-689 thousand ounces annually. A possible short-term surplus in 2026 is estimated at 20,000 ounces, but only if trading conditions stabilize.

The expert explained that platinum remains a metal with an extremely limited supply: it is 30 times rarer than gold, and the annual production volume is only about 190 tons.

In addition, platinum combines an industrial and protective function, unlike gold, and therefore remains a potentially interesting tool for diversification. In 2025, the metal rose in price by 140-160%, gold — by 70%, silver — by 147%.

"The ratio of gold to platinum prices has reached historically extreme values of about 2:1, which may indicate the potential for correction in favor of platinum. For a diversified portfolio, metal is of interest as a tool with exposure to both industrial and investment demand, which distinguishes it from pure protective assets like gold," concluded Rastorguev.

On December 24, it was reported that platinum soared to an all-time high of $2,377.50 per ounce. The metal, which started the year trading below $1,000, has now grown by more than 140% in 2025, outpacing even gold and silver.

Prior to that, on December 23, it became known that the price of gold reached $4,497.55 per ounce, updating the historical maximum and consolidating the growth. Tim Waterer, chief analyst at the KCM Trade platform, noted that the rise in precious metal prices is a consequence of increased tensions between the United States and Venezuela.

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