Current Development of Platinum Prices
The platinum price has significantly recovered in recent months and currently shows a slight increase at around $1,376 per ounce. After a sharp setback at the beginning of the week, the price managed to stabilize, although the recovery remains fragile. This development is important for private investors, as platinum is often viewed as an investment alternative to other precious metals such as gold and silver.
Background of Price Development
In the past months, the platinum price broke a long phase of stagnation. At the end of May, it reached $1,100 for the first time in two years and overcame the $1,200 per ounce mark two weeks later. Most recently, a price of $1,350 was reached, marking the highest level in almost eleven years. Since May 20, the price has increased by about 35 percent, and since the beginning of the year by around 50 percent.
Reasons for the Price Increase
- Supply Deficit: The platinum market has been experiencing a supply deficit for several years, which increases price pressure.
- Gold Price: The sharply rising gold price has overshadowed platinum, leading to a significant price difference between the two metals. This has made platinum a more attractive alternative for investors and jewelers.
- Demand from the Jewelry Industry: In Asia, particularly in China, the demand for platinum jewelry has risen sharply, as platinum is considered a cheaper and more robust alternative to gold. In the first quarter of 2025, demand increased by over 50 percent.
- Industrial Demand: In addition to the jewelry industry, there is also industrial demand for platinum, especially in the automotive industry for catalysts.
Outlook
The platinum price could remain volatile, as it is heavily influenced by global market conditions and demand. Forecasts suggest that the price could rise to about $1,400 per ounce by the end of next year. For private investors, it is important to keep an eye on these developments, as they can have a direct impact on investment strategies.