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After years in the shadow of gold and silver, platinum is staging a powerful comeback, fueled by surging demand and tightening supply. Is the white metal on track to recapture all-time highs, or is it destined for a repeat of an earlier boom and bust?

In this week’s The Gold Spot, Scottsdale Bullion & Coin’s Founder Eric Sepanek and Sr. Precious Metals Advisor Steve Rand look back at how their prior platinum predictions played out and explain why prices are heating back up. They discuss the 2008 platinum crash and how current supply and demand shortages insulate the market from those previous challenge.

2024 Platinum Call Hits the Mark

Back in May 2024, we took a close look at platinum, calling attention to several compelling dynamics in the market. At the time, platinum was facing a projected supply deficit of 476,000 ounces, its fourth straight year of demand outpacing supply. That persistent imbalance hinted at tightening availability and meaningful upside for platinum prices.

Through 2019 and early 2024, platinum prices experienced a dramatic swing between a low of $600/oz and a peak of $1,300/oz. Despite that 120% surge from peak to trough, the metal’s momentum petered out, with prices settling near the $1,000/oz mark.

Fast forward to today, and the past year has fallen remarkably in line with that forecast. From mid-2024 to mid-2025, platinum prices surged from $1,045/oz to a recent high of $1,470/oz, a 40% gain that highlights the bullish impact of supply-demand imbalances and platinum’s relevance.

What 2008’s Platinum Crash Still Teaches Us

While those gains alone might be enough to convince investors to pull the trigger, those who lived through the 2008 Great Financial Crisis or studied the massive crash might have some reservations.

In early 2008, platinum prices exploded to an all-time high of $2,273/oz, holding the hard-fought line for a few months before plummeting to $764/oz. That +60% drop mirrored the implosion of the metal’s largest source of demand: the automotive sector.

Platinum’s unique ability to convert carbon dioxide into carbon monoxide made it a staple in a fossil-fueled-dominated auto industry seeking to limit carbon emissions. Demand was high given that electric vehicles accounted for less than 0.01% of global vehicle sales.

In the aftermath of the financial crisis, new vehicle sales dropped by 40% and the “Big Three” US automakers lost 25% of their market share. With vehicles comprising over 40% of total platinum demand, the precious metal’s losses mirrored those of the auto industry.

To make matters worse, South Africa, the world’s largest platinum producer, experienced widespread power outages in 2008. These disruptions crippled production at a time when the market was already reeling from collapsing demand.

Entering the 5th Year of Supply Deficits

The World Platinum Council, whose data underpinned our highly accurate 2024 forecast, has released another bullish outlook for the platinum market. In 2025, demand is projected to reach 244 metric tons, again exceeding supply and marking the fifth consecutive year of deficits.

The current estimate points to a shortage of 848,000 ounces. However, the final number could prove even larger, especially considering that last year’s deficit reached 992,000 ounces—well above the original forecast of just 476,000 ounces.

Why Platinum Is a Solid Buy In 2025

Platinum’s outlook in 2025 is shaped by a tightening supply-demand imbalance, ongoing industrial substitution, and a macroeconomic backdrop that increasingly favors hard assets. With multiple drivers aligning, the case for higher platinum prices is stronger than it has been in years.

Demand Rises Across the Board

Platinum’s scarcity, value, and unique properties result in diverse demand sources, all of which are projected to grow:

• Automotive demand is forecast to hit an eight-year high of 3.25 million ounces, fueled by stricter emissions regulations and higher platinum loadings.
• Jewelry consumption is projected to grow by 2% in 2025, led by a 15% surge in China, the world’s largest platinum jewelry market.
• Investment demand is forecast to rise 7% year-over-year, with Q1 2025 investment demand up 28% quarter-over-quarter.
• Substitution from palladium continues to expand, with 877,000 ounces of palladium expected to be replaced by platinum in 2025.

Supply Sources Dwindle

While demand is on the rise, platinum supply is on a steep and continuous downward trend:

• Total supply is expected to fall 4% year-over-year, reaching a five-year low of 7 million ounces.
• Mining output, which makes up nearly 80% of supply, is on track for a 6% annual decline, after dropping 13% in Q1 2025 alone.
• Above-ground stockpiles, which fell 23% in 2024, are forecast to decline another 25% in 2025, leaving inventories that would cover only four months of demand.
• South Africa, which now produces 70%–80% of global mined platinum, continues to face energy shortages, labor unrest, and regulatory hurdles.

Green Energy Innovation Spark

Platinum’s role in the clean energy transition has found new demand, especially in green hydrogen technologies. Similar to its role in catalytic converters, the metal serves as a catalyst in fuel cells and water-splitting processes. Though still in early adoption, these applications could disrupt the demand from fossil-fuel-powered vehicles.

Looming Interest Rate Cuts

With the Federal Reserve poised to cut rates in the latter half of 2025 and beyond, the macro environment is turning more supportive for precious metals. Lower interest rates reduce the cost of holding non-yielding assets and often weaken the dollar, both of which are tailwinds for platinum. An uptick in safe-haven demand is likely to benefit platinum prices.

How high can platinum prices go?

Platinum’s historical price movement proves that supply-demand dynamics are the cornerstone of major rallies. With the supply deficit reaching into its fifth straight year and experts expecting the imbalance to continue until 2029, platinum is looking extremely bullish.

This setup could see prices extend beyond the white metal’s all-time peak of $2,273/oz. From current prices of around $1,350/oz. That would represent a 68% leap.

If you’d like to learn more about diversifying your precious metals portfolio beyond gold and silver, contact the Scottsdale Bullion & Coin team today. One of our precious metals advisors will be happy to answer your questions and offer personalized investing advice. Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.

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