Editor’s Note
This article examines the factors behind platinum’s strong market performance in 2025, highlighting increased demand from key sectors and recent analyses from major financial institutions.
Amid global political and economic turbulence and various uncertainties, the precious metals market has been advancing strongly. While gold and silver prices have been chasing each other higher, another precious metal—platinum—has emerged as a strong performer with robust gains. The frenzied buying of platinum by Chinese jewelers is considered a significant driving force behind its price surge. The latest research reports from UBS and Bank of America have provided in-depth analysis of this phenomenon and made predictions about platinum’s prospects.
Since the beginning of 2025, platinum prices have risen strongly, with a cumulative increase of over 30% to date. Currently, the spot price of platinum has climbed to $1,200 per ounce, hitting a near one-year high. The latest research report from UBS points out that since mid-May, global platinum ETF holdings have increased by about 4%. Recently, the implied volatility of both platinum and silver has risen sharply. The significant jump in China’s platinum imports in April was one of the important catalysts that ignited market optimism and drove the substantial price increase.
On Monday (June 9), UBS released its latest research report on precious metals developments. The report notes that recently, both open interest and trading volume for silver and platinum futures have increased, indicating growing investor interest. Platinum prices have already surpassed their year-end 2025 levels and are approaching next year’s price expectations, while silver has hit a 13-year high. Notably, when the implied volatility of platinum and silver rose sharply recently, gold’s volatility remained almost unchanged. Based on the latest research, UBS maintains its base forecast that silver and platinum will outperform gold this year.
Through analysis of a series of market phenomena, UBS summarized five common factors behind the recent strong performance of platinum and silver:
1. Expectations of a market supply deficit are fundamentally supporting platinum and silver prices.
2. The value attractiveness of platinum and silver relative to gold, which lagged earlier, is now improving.
3. Investor positioning in platinum and silver is relatively light.
4. The prices of these two precious metals have technically broken through key resistance levels.
5. Compared to gold, the thinner market liquidity for platinum and silver makes their price fluctuations more easily amplified.
The report provides a more detailed analysis of platinum’s performance this year. It states that while investors have long been bullish on platinum, they have struggled to find suitable entry points. In the past, the market generally expected platinum shortages due to supply constraints, which typically implied gradual price increases that did not match investors’ shorter investment horizons. However, the current situation is different.
The report points out two key new changes in the current market:
First, signals of tightening platinum supply are clear. The report indicates that platinum’s forward market has been in a state of backwardation this year, suggesting tight spot supply. Even after the confirmation of U.S. tariff exemption policies alleviated tightness in the gold and silver markets, platinum’s tightness has persisted.
Second, expectations for a recovery in demand from Chinese jewelers for platinum are high. The analysis states:
The report states that the significant jump in China’s platinum imports in April was one of the catalysts that ignited market optimism and led to the price rise at the end of May.
Additionally, the UBS report analyzed factors such as platinum breaking through the key technical level of $1,100, short-covering, and thinner liquidity compared to the gold market, which amplified recent price volatility. The report notes that global platinum ETF holdings have increased by about 4% since mid-May.
However, the report also cautions investors that one data point does not constitute a trend. Import data in the coming months will be key to determining whether platinum jewelry demand is truly recovering.
Coincidentally, the latest report from Bank of America also points out that the recent sharp rise in platinum prices is largely driven by the recovery in Chinese market demand.
In a research report released last Friday (6th), Bank of America analysts stated bluntly:
The report states that besides jewelry demand, platinum’s diverse applications are also important factors supporting its price. Platinum is widely used in automotive catalysts, electronics, and some green energy technologies, giving it a more stable demand structure.
It is also worth mentioning that on May 20, a Bloomberg report cited World Platinum Investment Council data, stating that China’s demand for platinum bars and coins more than doubled in the first quarter of this year, surpassing North America to become the world’s largest platinum retail investment market. China’s platinum imports in April totaled 11.5 tons, the highest level in a year.
Bloomberg Intelligence analysts stated that global demand for platinum is expected to exceed supply for the remainder of the current decade.