Platinum’s Mines: Will They Keep Up With Demand?

Platinum has moved from the shadows into focus. After years of muted performance, it’s now flashing all the signs of a major revaluation—tight supply, rising demand, and a price structure behaving more like a monetary asset than an industrial metal. According to the World Platinum Investment Council (WPIC), the platinum market is forecast to record a deficit of around 692,000 oz in 2025, with mine supply expected to decline rather than expand.

David Bird’s Take

ASX trader and veteran analyst David Bird has flagged platinum as “the next major precious-metal bull market,” with smart capital quietly repositioning. Writing in The Courier-Mail, Bird noted platinum appears to be forming a base reminiscent of gold in 2019–20 before its sharp rally. He highlights platinum’s unique industrial–investment appeal: still essential for catalytic converters and emerging hydrogen technologies, while increasingly viewed as a store of value. As a result, a once-overlooked metal is now being sought after.

Supply: The Tightest Link

Supply remains platinum’s biggest constraint. Unlike other commodities that can respond quickly to price signals, platinum production faces deep structural issues. The WPIC expects global mine output to fall 5–6% in 2025 to 7.1 million oz, with few new projects in the pipeline. South Africa, which produces 70–80% of global supply, continues to face labour disputes, power shortages, and infrastructure challenges. Any assumption that higher prices will quickly unlock new supply is optimistic.

Demand: Old Drivers, New Momentum

Demand is building across several fronts. Automotive catalysts remain key, supported by slower-than-expected EV adoption and ongoing demand for hybrids and internal combustion vehicles. Jewellery demand is rebounding, especially in China, where platinum offers a more affordable alternative to record-high gold. Investment interest is also rising—platinum remains under-represented in institutional portfolios and is regaining favour. Bird sees this industrial–monetary duality as a core strength.

Platinum for Investors

For bullion investors, the message is clear: platinum isn’t just catching up—it may be on the verge of breaking out. With supply largely fixed in the short term, any disruption—from strikes to power outages or geopolitical tension—can trigger sharp price moves. Bird believes we’re still early in the cycle. If you see precious metals as monetary insurance, establishing a core position in platinum now could be strategic.

Platinum is no longer on the sidelines. With constrained supply, expanding demand, and growing investor interest, it’s poised for a meaningful revaluation. Bird’s view that capital is flowing into platinum is no exaggeration. Mines are unlikely to keep pace in the near term—and that sets the stage for opportunity.