World Platinum Investment Council Reports 660% Surge in Platinum Investment

What's Happening?

The World Platinum Investment Council has reported a significant 660% year-on-year increase in global investment in platinum bars and coins during the second quarter of 2025. This surge has positioned platinum as the top-performing commodity in the first half of the year, surpassing gold and silver. The demand for platinum is driven by its sustained discount relative to gold, particularly in China, where both jewelry and investment demand are expected to grow strongly. The platinum price reached a ten-year high of $1,450 per ounce in July, with jewelry demand rising to levels not seen since 2015. The council forecasts continued growth in platinum demand, especially in hydrogen-based applications, which are expected to rise by 19% this year.

Why It's Important?

The surge in platinum investment highlights the metal's growing appeal as a safe-haven asset amid volatile markets. This trend is significant for the U.S. and global economies as it reflects shifting investor preferences and the potential for increased demand in various industries, including automotive and hydrogen applications. The structural deficit in the platinum market suggests sustained interest and potential price increases, which could impact industries reliant on platinum, such as jewelry and automotive manufacturing. The increased demand in China and other regions underscores the global nature of this trend and its implications for international trade and economic relations.

What's Next?

The World Platinum Investment Council anticipates continued strong investment demand in China, which may offset weaknesses in other regions. The council expects exchange-traded funds to resume net inflows in the second half of the year, driven by improved investor sentiment and platinum's discount to gold. The U.S. Senate's recent approval of a budget reconciliation bill extending the eligibility window for clean hydrogen production tax credits may further boost platinum demand in hydrogen applications. These developments suggest ongoing growth in platinum investment and potential shifts in market dynamics.