Platinum prices surged to their highest level in four years Monday, climbing 7.7% to $1,200.95 per ounce as market tightness and supply deficits intensify pressure on the precious metal.
The advance extended platinum’s rally for a sixth consecutive trading session, pushing the metal to its highest price since May 2021. The metal has gained more than 30% since the start of 2025.
“It’s supported by a combination of tight supply expectations, improving industrial sentiment, and technical follow-through from the broader precious metals rally,” Alexander Zumpfe, a trader at Heraeus Metals Germany, said in a Reuters report.
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The World Platinum Investment Council projects a supply deficit of nearly 1 million ounces for 2025, driven by strong automotive demand and constrained mining output. The shortage has pushed one-month lease rates above 13.5% on an annualized basis, compared to typical rates near zero.
“There’s been growing tightness since December,” Ed Sterck, director of research at the World Platinum Investment Council, told Bloomberg. He added that fundamentally, “the market is still headed for a deficit.”
South Africa, which produces around 80% of global platinum, has experienced declining output. Meanwhile, the automotive sector — accounting for approximately 43% of platinum consumption through catalytic converters — saw demand reach a seven-year high in the first quarter of 2025.
Investors moved significant amounts of platinum into US warehouses earlier this year amid concerns about potential trade tariffs. Exchange-traded fund holdings have climbed to a 10-month high, while the premium of spot prices over futures signals immediate supply tightness.
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