In the first six months of 2025, there has been significant investor interest in the commodity space. Fuelled by both fear and speculation, investors have shown great appetite for buying safe haven commodities, such as gold and silver.
As on June 28, 2015, platinum prices per troy ounce have surged by 47.51 per cent. Know what’s driving the rally
In the first six months of 2025, there has been significant investor interest in the commodity space. Fuelled by both fear and speculation, investors have shown great appetite for buying safe haven commodities, such as gold and silver.
However one specific commodity has emerged as the proverbial dark horse amid this rush. Even as the rally in gold seemed to ease this week with de-escalation in the Iran-Israel conflict, platinum prices recorded a fresh 10-year high.
The precious metal breached the $1,400 per troy ounce mark for the first time since September 2014. On June 26, 2025, platinum prices surged to $1,446.9 per troy ounce. However, platinum prices ended lower on June 27, closing at $1,340 per troy ounce, down by $79 or 5.57 per cent.
As on June 28, 2025, on a year-to-date (YTD) basis, platinum prices per troy ounce have surged by 47.51 per cent.
On the other hand, gold price per troy ounce has surged 24.62 per cent and the price of silver per troy ounce has surged 24.33 per cent. In 2025, the rally in gold seems to be easing amid de-escalating conflict between Israel and Iran.
In the past week, the price of gold per troy ounce has reduced by $108.40 or 3.19 per cent. On the other hand, silver prices have made a marginal gain of $0.01 or 0.03 per cent in the past one week. However, platinum prices have increased by $72.6 or 5.66 per cent in the past week. The question then is what’s the driving force behind the rally in platinum prices?
Platinum prices jumped to their near 10-year high on June 26, 2025 amid speculative buying. This speculative buying spree followed concerns regarding future supply of the precious metal.
The World Platinum Investment Council estimates a supply deficit of almost 1 million ounces in 2025 as the total platinum supply is anticipated to decrease by 4 per cent year-on-year (y-o-y) in 2025
According to a Bloomberg report, the buying spree was led by the US and China. Earlier in 2025, US investors purchased the metal anticipating the imposition of tariffs on imports.
The report also suggested that the bullish sentiment in platinum is likely to have also come from spillover bullishness from the rally in gold prices seen in 2025.
Notably, the breakout seen in platinum occurred on May 20, around the $1,068 per troy ounce mark, just one day after the WPIC published its quarterly report.
Apart from the push from speculative buying, the demand for platinum is also influenced by its demand as a raw material for the jewellery industry. Apart from its use in jewellery, platinum is also used in various industries, such as automotive, chemical, electrical industries and petroleum industry. Additionally, factors such as economic indicators, geopolitical events and mining production impact platinum prices.
Platinum hit its record high in April 2008, as its price reached $2,166 per troy ounce amid the onset of the global financial crisis. At the recent high of $1,446.9 per troy ounce, platinum is still 49.69 per cent below the record high price.
A look at how platinum has traded post its record high in 2008 reveals that the price of platinum declined nearly 50 per cent in the 10 months following its record high. Another thing which can be observed from platinum’s historical price trajectory is that the price of the metal tends to remain range-bound for a long period of time with the exception of a few occasional spikes. In 2025, the metal seems to be following a similar trajectory if one looks at the price of the metal between January and June, wherein there has been a dramatic increase of nearly 50 per cent.
Conclusion
According to the World Platinum Investment Council’s report, both supply and demand are expected to decline in 2025.
The total supply is expected to fall to 6,999 koz, indicating a decline of 4 per cent y-o-y from 2024. On the other hand, the total demand is expected to fall to 7,965 koz. With demand still outpacing supply, the upward pressure is likely to remain. In this context it remains to be seen whether investors will get a flashback of 2008 or the metal will chart fresh history this year.