What's Happening?
Global investment in platinum bars and coins surged 660% year-on-year in the second quarter of 2025, outpacing gold and silver. The World Platinum Investment Council reports that platinum has become the top-performing commodity, with significant demand growth in China. The platinum price reached a ten-year high, and jewellery demand rose to the highest level since 2015.
Why It's Important?
The surge in platinum investment reflects its growing appeal as a valuable commodity, particularly in China. The sustained discount relative to gold enhances its attractiveness to investors. The increased demand for platinum in various applications, including hydrogen-based technologies, highlights its importance in the global market and potential for future growth.
What's Next?
Platinum's investment case remains strong, with expectations of continued demand growth. The market is in structural deficit, suggesting potential price increases. The focus on hydrogen-based applications may drive further demand, while geopolitical factors could influence investment trends. The platinum industry may see increased interest from investors seeking diversification.
