The Platinum Rally
The most dramatic reversal in the 2025 precious metals market has been platinum's remarkable price surge. According to data from the Shanghai Gold Exchange, platinum prices reached 324.09 RMB/gram by June 30 – a 45.28% increase since January, far outpacing gold's performance during the same period.
This resurgence evokes memories of platinum's 2008 peak when it traded at 528 RMB/gram, double the price of gold. During that period:
- Platinum jewelry became a status symbol among young consumers
- Major brands like Chow Tai Fook and Lao Feng Xiang featured platinum wedding rings as centerpieces
- Marketing campaigns successfully positioned platinum as the "metal of love"
Recent market shifts have created new opportunities for platinum. As gold prices reach record highs:
- Consumers are becoming more cautious about gold purchases
- Jewelers facing squeezed margins are shifting focus to platinum
- Shenzhen's Shuibei district added 10+ independent platinum showrooms in 2025 (a 300% increase)
👉 Why investors are turning to platinum
Behind the Price Surge
Is platinum's price increase driven by jewelry demand recovery? Industry experts suggest otherwise:
- Jewelry accounts for <18% of total platinum demand
Platinum faces several consumer challenges:
- Difficult purity verification (easy confusion with white gold)
- Limited resale channels
- Lower cultural significance compared to gold in wedding markets
The 2025 Platinum Yearbook projects global platinum jewelry demand will decline to 132.5 million ounces this year.
Real Drivers of Platinum's Rise
Platinum's volatility reflects fundamental supply-demand imbalances:
- 2000-2008: "Golden age" driven by automotive catalytic converters
- 2010s: South African production increases and EV adoption reduced demand
2025: Three key factors are pushing prices up:
- South African supply uncertainties
- Hydrogen energy sector development
- Sustained industrial demand growth
Market Winners and Losers
Platinum's surge creates varied impacts across the supply chain:
Big Winners
Hao Tong Technology (recycling leader)
- 129.46% YoY revenue growth Q1 2025
- Capacity expanding to 18,000 tons/year by December 2025
Other Beneficiaries:
- Guiyan Platinum (comprehensive recycling)
- Huayang New Materials (industrial applications)
👉 Platinum investment opportunities explained
Jewelry Retailers: High Risk/Reward
- Opportunity: Higher margins vs. gold products
- Risk: Low industry inventories (<0.5% of stock)
- Cautionary Tale: 2015 inventory buildup led to 2016 losses
FAQ
Q: Is platinum a good investment compared to gold?
A: While platinum shows strong short-term performance, its higher volatility makes it riskier than gold for conservative investors.
Q: What's driving industrial demand for platinum?
A: Hydrogen fuel cell development and chemical processing applications are creating new demand streams.
Q: Should I buy platinum jewelry as an investment?
A: Platinum jewelry carries high markups and limited resale options – bullion or ETFs may be better investment vehicles.
Q: How long might this platinum rally last?
A: Market analysts suggest at least 12-18 months, contingent on South African mining output and hydrogen sector growth.