Gold Price Glitters Too Brightly, Prompting Jewellers to Switch to Platinum

The global precious metals market has witnessed a shift as platinum gains prominence. With gold prices surging to all-time highs, jewellers and industries are increasingly exploring alternative metals. One notable standout is platinum, whose rising demand and constrained supply have pushed its prices significantly higher in recent months.

Platinum Prices Surge Over 30% in 2025

Spot platinum prices have rallied by over 30% year to date, reaching approximately $1,200 per ounce. This surge closely mirrors the 27% rise seen in gold prices over the same period. According to a report, the recent surge is attributed to structural supply deficits and renewed consumer demand, particularly in the jewellery sector.

While gold remains a benchmark for value, platinum has quietly gained ground, largely due to a favourable supply-demand equation and market interest in diversification.

China's Jewellery Demand Supports Platinum Uptick

After years of subdued demand, interest in platinum jewellery is rebounding, especially in China, one of the largest markets for gold. In April alone, China imported 11.5 metric tons of platinum, marking its highest monthly import in over a year. This shift suggests that jewellers are seeking alternatives as gold prices remain elevated.

Diversified Demand Beyond Jewellery

Platinum’s value is not solely derived from its aesthetic appeal. The metal plays a crucial role in industrial sectors such as automotive manufacturing, where it is used in catalytic converters, as well as in electronics and chemical processing. This diversified demand base offers support to prices even when jewellery demand fluctuates.

The broader industrial utility of platinum provides a level of demand stability that complements its rising appeal in the luxury and investment markets.

The Broader Context of Precious Metal Movements

The surge in platinum prices is part of a larger rally across precious metals. Gold, often viewed as a safe-haven asset, has climbed to historic levels above $3,500 per ounce. Factors contributing to gold’s rise include ongoing geopolitical tensions, China’s economic uncertainty, and renewed market speculation around global leadership transitions.

Silver, too, has experienced gains of approximately 25% this year. However, the pace of increase has been tempered by slower growth in solar panel production, one of silver's key demand areas.

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Conclusion

As gold prices continue to rise, platinum is emerging as a compelling alternative in both the jewellery and industrial sectors. Its 30% rally in 2025 reflects renewed demand, particularly from China, alongside structural supply constraints. Supported by its versatile applications, platinum is asserting itself in a market traditionally dominated by gold and silver.

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