All That Glitters Isn’t Gold: Platinum’s Hot Streak

Platinum has stolen the spotlight in 2025, not just for its spectacular price performance but also for the underlying story of scarcity and resilience playing out in the market. Despite facing major headwinds from the global transition to electric vehicles (EVs) and a tough mining environment, platinum’s recent surge has surprised both skeptics and bulls alike.

Platinum Supply Crunch: Deficits Propel Prices

This year marks the third consecutive annual supply deficit for platinum, with the World Platinum Investment Council (WPIC) forecasting a shortfall of 966,000 ounces—deepening the sense of scarcity in the market. Total platinum supply is on track to be the lowest in five years, declining 4% to 6,999,000 ounces in 2025. Disruptions in South African mines—including severe weather, power shortages, and water supply issues—have been pivotal to this supply drop, pushing global production down and making nearly 90% of the industry profitable after years of running in the red.

Demand Resilience and Shifting Drivers

Despite initial fears that EV adoption would erase demand, several factors have kept platinum consumption robust:

Automotive Demand: While battery electric vehicle (BEV) adoption has slowed—partially due to shifts in U.S. policy—hybrid vehicles and conventional internal combustion engines still require platinum in catalytic converters. WPIC reports automotive platinum demand reaching an eight-year high in 2025, as policies and consumer preferences delay an all-electric transition.

Jewelry and China’s Role: China’s demand for platinum jewelry has soared, with processing volumes jumping 26% in Q1 2025 and overall global jewelry consumption up 5%. Platinum’s enduring appeal and new trends in Asia have fortified this pillar of demand.

Industrial and Green Tech: Industrial use holds steady, especially as platinum plays a critical role in hydrogen fuel cells and emerging green technologies—offsetting some declining usage elsewhere.

Key ETFs for Platinum Exposure

For investors eager to participate in platinum’s renaissance, several ETFs offer convenient, diversified access:

GraniteShares Platinum Trust (PLTM): Tracks the spot price of physical platinum, is the lowest-cost option among major platinum ETFs, and is physically backed by platinum bars stored in London. The fund has delivered a remarkable year-to-date return of 50.00% and 45.53% over the past year, with volatility reflecting the market’s dynamism.

abrdn Physical Platinum Shares ETF (PPLT): Also physically backed and tracking platinum’s spot price, PPLT saw a 45.13% return in the past year. With $1.71B in assets and a 0.60% expense ratio, it provides direct exposure to the underlying metal.

abrdn Physical Precious Metals Basket Shares ETF (GLTR): Offers diversified exposure to four precious metals (gold, silver, platinum, and palladium)—with over 85% in gold and silver but still significant platinum allocation. GLTR returned 37.83% in the past year and is ideal for those seeking broader metals diversity.

YTD Return Comparison: Gold (GLD) vs PLTM vs GLTR (through 28 Jul 2025)

Is Platinum’s Rally Sustainable?

The strength of platinum’s 2025 rally—up 40% in just six months and hitting an 11-year high—reflects both supply constraints and unexpected demand resilience, especially from China. With above-ground inventory still robust (over nine million ounces globally), some analysts caution that continued deficits would be required to trigger further price surges; yet the fundamental outlook remains supportive, especially as investment flows persist.

Investors looking for long-term potential amid this structural shift should consider specialized ETFs like PLTM and PPLT for pure platinum exposure, or GLTR for a balanced approach—a move that could help hedge portfolios against uncertainty while participating in one of 2025’s standout commodity stories.

Compare platinum’s contenders, line up PLTM, PPLT, and GLTR in our ETF Compare Tool