Platinum Surges 45% YTD to Hit Decade-High, Beats Gold and Silver Amid Rising Demand and Tight Supply

Precious metal Platinum prices have vaulted over 5%, reaching a decade-high of $1,330 per ounce. With an astonishing 45% rise since the start of the year, the precious metal is outpacing expectations, driven by tightening supply and burgeoning demand across key sectors, according to the CNBC-TV18 report.

Platinum Soars to Decade High: Platinum Vs Gold and Silver

Despite its rally, platinum remains significantly more affordable than gold, which currently hovers near $3,400 per ounce. At approximately $1,350 per ounce-or close to Rs 4,500 per gram domestically-platinum offers an attractive entry point for a wide range of consumers seeking both style and value.

Platinum Trading At Present

In 2025, platinum is emerging as one of the top investment choices, following gold and silver. So far this year, gold prices have gone up by 30%, and silver has risen by 26%. But platinum has outperformed both, climbing an impressive 40% since January 1.

Right now, platinum is trading at around $1,250 per ounce-its highest level in four years, last seen in April 2021. The all-time high for platinum was nearly $2,166 in April 2008. Before that, it hit a peak in February 1980, when the price soared 350% in just two years-from $190 in 1978 to $900 in 1980, according to a report by Financial Express.

But there are two important things to keep in mind. First, each time platinum has hit a record high, prices have fallen sharply afterward. In the 1980s, it dropped 70% within 30 months. In 2008, the fall was even faster-plunging more than 50% in just 10 months.

Second, platinum prices have mostly stayed in a range over the years, except during these sudden spikes. For example, in January 2025, before the recent surge, platinum was still trading around $900-similar to where it was decades ago.

Analysts point to a perfect storm of factors fueling the rally, a pronounced supply deficit, increased restocking by jewellers, renewed enthusiasm from investors, and a broadening scope of industrial applications.

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According to Varghese Alukkas, Managing Director of Jos Alukkas, this rally is significantly boosting consumer sentiment and driving strong sales momentum. "Over the past six months alone, platinum prices have surged by 45-50%, and this has instilled considerable confidence in buyers," Alukkas shared with CNBC-TV18. "Many customers now prefer platinum jewellery over gold, which has already seen a steady rise for years."

Once viewed primarily as a luxury adornment, platinum is now evolving into a dual-purpose asset-both stylish and increasingly seen as an investment. Lifestyle-driven collections such as Men of Platinum and Platinum Love Bands have contributed to repositioning the metal as a symbol of both elegance and value. "When prices climb, it reinforces the notion that platinum is more than a fashion statement-it's a smart buy," Alukkas added.

The impact on consumer behaviour has been clear. Alukkas noted a dramatic upswing in platinum jewellery sales, which have surged by over 70-80% in just the last two to three years. "Our customers who previously purchased platinum are now seeing real value appreciation. That builds trust and fuels continued interest," he noted.

Platinum Movement Ahead: Platinum Futures Demand

Looking ahead, the momentum is poised to continue, bolstered by new product launches and upcoming industry events. One such event is the highly anticipated Buyer-Seller Meet (BSM) scheduled to take place next week in Kochi, which aims to spotlight fresh designs and foster innovation in retail offerings.

Platinum's future looks promising, especially because of its growing use in modern technologies. It plays a key role in car catalytic converters and hydrogen fuel cell systems, which are important for cleaner, greener energy. As these industries grow, the demand for platinum in manufacturing is increasing. This rise in industrial use, along with its growing appeal to consumers, is helping to strengthen the positive outlook for platinum in the coming years.

Disclaimer

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