A resurgence in Chinese demand for platinum jewellery is accelerating a deeper-than-expected global supply deficit in 2025, according to the World Platinum Investment Council (WPIC). The council, citing data from consultancy Metals Focus in its latest quarterly report, said the rebound marks a notable turnaround after years of declining interest.
Chinese platinum jewellery fabrication surged 26% year-on-year in the first quarter, driven by platinum’s relative affordability compared to gold. While gold prices have climbed 21% so far this year—following a 27% rally in 2024—platinum has gained a more modest 9% after consecutive years of losses.
“With gold prices rising and gold jewellery demand underperforming, wholesalers and regional retailers took profits by liquidating unsold gold inventory and rebuilding platinum stock,” the WPIC noted.
For the full year, platinum jewellery demand in China is projected to rise 15% to 474,000 troy ounces. Though this remains well below the 2014 peak of 2 million ounces, it signals a meaningful recovery in a key market that had been steadily contracting due to weaker consumer sentiment and price volatility.
On a global scale, platinum jewellery demand is forecast to increase by 5% to 2.1 million ounces in 2025. However, gains in the jewellery segment are not expected to fully offset declines elsewhere. Demand from the automotive sector is set to fall 2%, while industrial use—particularly in the chemical and glass industries—is forecast to drop 15%. As a result, overall global platinum demand will decline by 4% to 8.0 million ounces this year.
At the same time, total supply is projected to shrink by 4% to 7.0 million ounces, the lowest level in five years. The drop stems from reduced mined output across all major producing regions except Russia.
This widening imbalance will deepen the structural market deficit to 966,000 ounces, up from a 848,000-ounce shortfall estimated just two months ago, the WPIC said.
To bridge the gap, above-ground platinum inventories are expected to fall by 31% to 2.2 million ounces—equivalent to roughly three months of global demand.
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