Positive Comments: New Industrial Opportunities and Market Vitality Unleashed Behind the Soaring Platinum Price
The “comeback” of the platinum price in 2025 is by no means accidental. Its 45.28% increase within the year is not only a dramatic reversal in the precious metals market but also reflects the underlying logic of global industrial chain transformation and the rise of emerging demand. This round of price increase is both a re – pricing of the industrial attribute value of platinum and opens up new growth opportunities for relevant industrial chain enterprises and investors.
Firstly, the industrial essential value of platinum has been re – activated, becoming the core driving force for the price increase. As the “industrial vitamin”, platinum is irreplaceable in automobile catalytic converters, chemical catalysts, and the hydrogen energy industrial chain (such as catalysts for proton – exchange membrane fuel cells). As mentioned in the news, from 2000 to 2008, platinum reached three times the price of gold due to “industrial essential demand”. However, after 2010, the price continued to decline due to the release of South African production capacity and the impact of new – energy vehicles on the demand for fuel – powered vehicles. Now, with the promotion of the global “dual – carbon” goal, the hydrogen energy industry has entered a stage of large – scale development. As a key material for fuel cells, the demand for platinum has been reignited. At the same time, although traditional fuel – powered vehicles are affected by new – energy vehicles, the global stock market still exists, and the demand for platinum in catalytic converters remains stable. The demand for catalysts in the chemical field (such as petroleum refining and fertilizer production) also continues to grow. The “multi – wheel drive” of industrial demand, combined with the supply uncertainty of South African platinum mines due to problems such as power shortages and labor disputes (South Africa accounts for more than 70% of global platinum production), directly widens the supply – demand gap of platinum, which is the fundamental logic behind the soaring price.
Secondly, the explosive growth of the platinum investment market reflects the pursuit of scarce assets by funds. According to the WPIC report, in the first quarter of 2025, the demand for platinum bars and coins in China soared by 140%, with a trading volume of nearly 1 ton, surpassing North America to become the new hot spot for global platinum investment. This phenomenon is related to the “substitution effect” under the high gold price. When the price of gold is too high due to risk – aversion sentiment or inflation expectations, some investors will turn to platinum, which is relatively undervalued in price and has stronger industrial attributes. More importantly, the “financial attribute” of platinum is being re – explored. Its price has been lower than that of gold for a long time (before 2025, the platinum price was only about 60% of the gold price), and the recovery of industrial demand gives it room for “value re – evaluation”, attracting the attention of hedge funds and institutional investors. The influx of this investment demand further amplifies the price – rising trend, forming a “dual – wheel drive” of “industrial demand + investment demand”.
Finally, upstream enterprises in the industrial chain have entered a period of explosive performance, and the capital market has responded positively. As mentioned in the news, the revenue of Haotong Technology, a leading domestic recycling enterprise, increased by 129.46% year – on – year in the first quarter, and its recycling capacity will also be expanded from 6,000 tons per year to 18,000 tons per year by the end of 2025. The increase in the platinum price directly widens the price difference in the “recycling – processing – sales” process, significantly increasing the profit margin of recycling enterprises. Precious metal comprehensive recycling enterprises such as Guiyan Platinum Industry also benefit from the upward cycle, and their stock prices have continued to rise and are at a two – year high, reflecting the market’s optimistic judgment on the profit expectations of upstream enterprises in the industrial chain. This positive cycle of “price increase → profit improvement of recycling enterprises → increased capital investment → capacity expansion” not only activates the efficient utilization of platinum resources (recycled platinum accounts for more than 30% of global supply) but also provides impetus for the sustainable development of the platinum industrial chain.
Negative Comments: Hidden Worries and Risk Challenges Behind the Soaring Platinum Price
Although the soaring platinum price seems “irresistible”, the hidden worries behind the prosperity are also worthy of vigilance. From the vulnerability of the demand structure to the potential risks in the middle and lower reaches of the industrial chain, from the unsustainability of price fluctuations to the limitations of the consumer market, this round of price increase may hide multiple challenges.
Firstly, the “pseudo – recovery” of jewelry demand cannot support the long – term price logic. As clearly stated in the news, jewelry only accounts for 18% of platinum demand, and the global demand for platinum jewelry decreased slightly to 1.35 million ounces in 2024, and is expected to further decline to 1.325 million ounces in 2025. Currently, some gold jewelry merchants are turning to platinum jewelry, which is essentially a “short – term substitution” under the high gold price, rather than a fundamental recovery of platinum jewelry consumption. The consumption pain points of platinum jewelry have not been solved: it is difficult to distinguish the purity (easily confused with white K – gold), there are few recycling channels (high loss in cashing), and it lacks cultural heritage (gold still dominates 58% of the wedding scene). If the gold price back or consumers return to their preference for gold, the “popularity” of platinum jewelry may quickly fade, making it difficult to form continuous demand support.
Secondly, the “dependency” on industrial demand may amplify the risk of price fluctuations. The core driver of the platinum price is industrial demand, but industrial demand itself has strong cyclicality and policy dependence. For example, the development speed of the hydrogen energy industry directly affects the demand for platinum. If there are breakthroughs in fuel cell technology (such as low – platinum or platinum – free catalysts) or the policy support is less than expected, the industrial demand for platinum may fall short of expectations. The supply fluctuations of South African platinum mines (such as the alleviation of the power crisis and the commissioning of new mines) may also quickly reverse the supply – demand gap. In addition, as an industrial metal, the platinum price is easily affected by the macro – economic cycle. If the global economic downturn leads to a contraction in industrial demand, the price may face a sharp correction. Historically, the sharp decline in the platinum price after 2010 due to the release of South African production capacity and the impact of new – energy vehicles is a typical example of the cyclical change in industrial demand.
Thirdly, enterprises in the middle and lower reaches of the industrial chain face the “inventory trap” and profit pressure. For jewelry retail enterprises, there is a contradiction between the temptation of “high gross profit” brought by the increase in the platinum price and the reality of “low inventory”. As mentioned in the news, the proportion of platinum inventory of leading brands such as Chow Tai Seng and Chao Hong Ji was less than 0.5% at the end of 2024. If enterprises hoard a large amount of inventory because they are optimistic about the continuous price increase, once the subsequent demand fails to meet expectations or the price回调, they will face huge inventory impairment risks. The lesson in 2015 is particularly profound. At that time, the industry hoarded a large amount of inventory because it was optimistic about the platinum prospect, and the weak demand the following year made the inventory a burden for enterprises. In addition, the design and marketing costs of platinum jewelry are higher than those of gold (it is necessary to strengthen cultural labels such as “love metal”). If enterprises only rely on price increases and ignore the improvement of product strength, they may fall into the dilemma of “no increase in sales volume and high costs”.
Fourthly, the “speculation” in the investment market may exacerbate the price bubble. The current explosive growth of platinum investment demand (such as a 140% increase in demand in China in the first quarter) is partly due to the “chasing – up” behavior of short – term funds, rather than long – term value investment. The investment attribute of platinum is weaker than that of gold (there is no globally unified pricing benchmark and lower liquidity). If the market sentiment changes, speculative funds may quickly withdraw, leading to sharp price fluctuations. For ordinary investors, the cashing cost of platinum bars and coins (such as handling fees and appraisal fees) is relatively high. If they blindly follow the trend and invest, they may face the liquidity risk of “easy to buy but difficult to sell”.
Suggestions for Entrepreneurs: Grasp Opportunities with a Long – term Vision and Short – term Actions, and Avoid Risks with Integrity and Innovation
Facing the market opportunities and risks brought by the soaring platinum price, entrepreneurs need to make rational judgments and formulate strategies based on their own business scenarios. The following suggestions are for reference:
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Entrepreneurs in the industrial field: Focus on long – term demand such as hydrogen energy and strengthen technological barriers
The core of platinum’s industrial demand lies in the hydrogen energy and catalytic fields. For entrepreneurs deploying in the hydrogen energy industrial chain (such as fuel cells and hydrogen production equipment), they need to pay attention to the trend of “cost reduction and efficiency improvement” of platinum as a catalyst. Although the current demand for platinum is driven by the development of hydrogen energy, in the long run, low – platinum or platinum – free catalyst technologies (such as alloy catalysts and carbon – based materials) are the direction of industrial upgrading. Entrepreneurs can make early arrangements for relevant technological research and development or cooperate with universities and research institutions to reduce their dependence on platinum and avoid the cost risks brought by future technological iterations. At the same time, they should pay attention to the supply dynamics of South African platinum mines (such as policy changes and capacity planning) and lock in platinum resources through long – term agreements or strategic reserves to ensure the stability of the supply chain. -
Entrepreneurs in the recycling field: Expand capacity in a prudent manner and optimize the recycling network
Recycling enterprises (such as Haotong Technology) have benefited significantly from the upward cycle of platinum, but capacity expansion needs to be cautious. Entrepreneurs need to evaluate their own financial strength and the sustainability of market demand. If the platinum price回调, the recycling price difference may narrow, and excessive capacity expansion will lead to idle capacity. It is recommended to adopt a “step – by – step capacity expansion” strategy, give priority to improving the utilization efficiency of existing capacity (such as optimizing the recycling process and reducing energy consumption), and at the same time expand recycling channels (such as cooperating with industrial enterprises and automobile dismantling plants) to build a stable raw material source. In addition, they can explore the integrated model of “recycling – refining – sales” to increase added value (such as producing high – purity platinum compounds) and avoid relying solely on the “price difference” for profit. -
Entrepreneurs in the jewelry field: Be vigilant against short – term popularity and strengthen product strength and brand culture
Entrepreneurs should be cautious when seizing the “short – term substitution” opportunity of platinum jewelry. They should avoid blindly hoarding inventory and can adopt a procurement strategy of “small batches and multiple styles”, and adjust the inventory dynamically according to market feedback. At the same time, they need to solve the consumption pain points of platinum jewelry. Firstly, improve the transparency of purity identification through technological means (such as laser engraving and blockchain traceability). Secondly, improve the recycling channels (such as cooperating with banks and pawnshops to establish a standardized recycling system). Thirdly, strengthen brand culture construction (such as launching platinum jewelry series with “minimalist design” and “sustainable concept” according to the preferences of the young group), rather than relying solely on “cost – performance” marketing. In addition, they can explore combined products of “platinum + gold” (such as platinum – inlaid gold pendants) to drive platinum consumption with the cultural advantages of gold. -
Entrepreneurs in the investment field: Rationally view price fluctuations and focus on long – term value
For entrepreneurs participating in platinum investment (such as private equity funds and wealth management institutions), they need to distinguish between “speculation” and “investment”. The short – term price surge may include market sentiment premium, and they need to be vigilant against the bubble risk. The long – term value depends on the actual implementation of industrial demand (hydrogen energy, catalysis). It is recommended to judge the price trend through fundamental analysis (such as South African supply data and the progress of hydrogen energy policies) and avoid blindly chasing up. In addition, they can design diversified investment products (such as platinum ETFs and structured products linked to industrial enterprises) to reduce the volatility risk of a single asset and provide more flexible exit channels for investors.
Overall, the “comeback” of the platinum price in 2025 is the result of the combined effects of the recovery of industrial demand, the warming of investment sentiment, and supply – side disturbances. It not only brings growth opportunities to the relevant industrial chain but also hides risks such as a fragile demand structure and sharp price fluctuations. Entrepreneurs need to adopt a perspective of “long – term vision and short – term actions”, grasp long – term trends such as hydrogen energy, and avoid short – term speculation and inventory risks to walk more steadily and further in the “carnival” of the platinum market.
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