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| By Sean Brodrick |
Traders have been chasing bull markets this year in gold, silver, tech, defense and more.
But in the background, there has been a quiet bull market no one noticed.
The good news is you can still make a fortune in it.
I’m talking about platinum.
After snoozing for a decade, it is roaring back to life.
In June, platinum prices jumped higher — up approximately 28% on a month-over-month basi.
That’s a massive surge, its best monthly gain since 2008.
Looking at the year so far, platinum has climbed roughly 47%-54%!
Prices recently topped $1,400 per ounce — the highest level since 2014.
The setup for platinum points to a long-overdue breakout, driven by shrinking supply, rising demand and tightening inventories.
You could say platinum is having a golden hour.
The Forgotten Metal
Platinum is 30 times rarer than gold, but it is also significantly cheaper per ounce.
Platinum production is confined to a handful of countries.
South Africa dominates, responsible for nearly 70% of global mine supply.
Russia and Zimbabwe contribute smaller shares, while the U.S. and Canada add only a trickle.
And while only 8% of platinum demand comes from investors, the rest is spread across critical applications:
- Automotive catalytic converters: 37%
- Industrial uses: 30%
- Jewelry: 24%
That wide range of utility makes platinum both a precious metal and a powerful industrial material.
Supply Squeeze
If you’re looking for a single reason platinum prices are taking off, look to the mines — or rather, their lack of output.
In Q1 2025, global mine production of platinum fell 13% year-over-year, marking the lowest quarterly output since the pandemic-disrupted Q2 2020.
Chronic problems in South Africa — power shortages, labor unrest, rising costs and underinvestment — are choking production at the source.
Russia, the second-largest producer, is grappling with sanctions and geopolitical fallout from its war in Ukraine.
Even recycling isn’t picking up the slack.
Recycled platinum volumes lag behind pre-2021 levels.
Altogether, total supply is expected to drop to just 7 million ounces in 2025 — a 4% decline from last year, and a staggering 16% below the 2021 peak.
Demand Heating Up
On the demand side, it’s full steam ahead.
Total demand in 2025 is projected at 7.86 million ounces — creating a supply deficit of 848,000 ounces for the year, the third straight annual shortfall.
What’s driving this demand?
- Auto demand. Carmakers are increasingly relying on platinum for catalytic converters, particularly in hybrid vehicles.
- China goes shopping. Platinum imports into China jumped 47% month-over-month in April, hitting a 12-month high. Chinese buyers are scooping up platinum bars, coins and jewelry.
- Jewelry revival. With its silvery sheen and hypoallergenic qualities, platinum jewelry is winning back favor. Especially in Asia, where price-conscious buyers opt for platinum over gold.
Even investment demand — typically a small slice of the pie — is on the rise.
ETFs and speculative buyers have added 420,000 ounces of platinum so far in 2025, a 7% increase year-over-year.
The shrinking supply of platinum, along with strong demand, has driven the platinum market into a deficit of nearly 1 million ounces over the past two years, with a similar shortfall anticipated this year.
Stockpiles Drying Up
Now, let’s add in that years of supply deficits have quietly drained global stockpiles.
Above-ground platinum inventories, once a cushion for the market, are shrinking fast, down to just over 2 million from 5 million ounces in 2022.
That’s a 57% drop in three years.
Compared to gold, platinum still appears relatively inexpensive. In other words, the metal is still flying under the radar.
A Word of Caution
There are always risks in metals and mining.
If electric vehicles take more and more market share, demand for platinum in catalytic converters will take a hit.
Also, while above-ground stockpiles are shrinking, they still exist and could limit explosive upside in the short term.
But with mine output struggling, demand broadening and platinum still cheap relative to history, those risks look manageable — especially when stacked against the bullish tailwinds.
My bottom line is that after years in the wilderness, platinum is re-emerging as a high-potential play in the precious metals space.
Between industrial utility, supply tightness, jewelry appeal and rising investor interest, all the necessary ingredients are in place for a sustained rally.
An Easy Way to Play It
Most platinum miners have feet of tin and should be avoided.
However, you can buy the abrdn Physical Platinum Shares ETF (PPLT).
It holds physical platinum, fully allocated in London and Zurich vaults, so it tracks the price of the metal closely.
It has an expense ratio of 0.6% per year.
And it is finally, FINALLY pushing past the high it set back in 2021.
After five years of compression, this bull market is likely beginning.
And savvy investors should take note and grab a ticket on the platinum rocket while they can.
All the best,
Sean
P.S. Of course, gold is still in full “bull mode,” too. As is silver. And I have a bunch of great leveraged ways to play both.
In fact, I recently put all these gold and silver stocks together in a series of reports. Check them out here.
