Platinum: The Overlooked Precious Metal — Until Now

The price of platinum has surged to a 10-year high, reaching levels not seen since 2013 in GBP terms and 2014 in USD.[1] Year-to-date (26th June 2025), platinum is up 32% in GBP and a remarkable 43% in USD, outpacing many traditional commodities and grabbing the attention of investors.

Is this just a short-term rally, or the beginning of a longer-term structural shift?

A Perfect Storm: Supply Struggles Meet Demand Growth

Earlier this year, The Royal Mint sat down with platinum expert Edward Sterck to discuss anticipated supply deficits in the platinum market. That conversation, recorded before this year’s breakout rally, now seems increasingly prescient. (Watch on YouTube here).

Recently, multiple incidents have hit key platinum producers. Sibanye Stillwater announced damage to its Siphumelele mine shaft, affecting operations and potentially output. Eastern Platinum (EastPlats) and Wesizwe Platinum, both based in South Africa, a country responsible for over 70% of global platinum supply, have suffered cyberattacks, with Wesizwe even facing suspension from the Johannesburg Stock Exchange.

These disruptions underscore platinum’s vulnerability to concentrated supply risk, making it a commodity that is especially sensitive to certain supply-side issues.

Hydrogen: A Catalyst for Platinum Demand

In June 2025, the UK government announced £500m of investment in hydrogen infrastructure as part of the Plan for Change initiative to make Britain a clean energy superpower. [2]

New funding has been allocated to creating the UK’s first regional hydrogen transport and storage network. The new infrastructure will help support hydrogen-consuming industries like iron, steel, glass, chemicals and ceramics.

Commenting on the project, UK Energy Secretary Ed Miliband said; ‘We are investing over half a billion pounds in our industrial heartlands to deliver jobs and energy security for Britain. By building hydrogen networks, we are securing homegrown energy that will power British industry for generations to come. This will bring in the investment needed across the country to deliver our Plan for Change by unlocking clean energy and growth in our local economies.’

Many investors may not realise that the hydrogen industry is a major source of demand for platinum. Proton exchange membrane (PEM) technology uses platinum to convert water into hydrogen and oxygen through a process known as electrolysis. Significant investment in the UK hydrogen sector could boost demand for platinum.

Jewellery: China’s Platinum Comeback

Meanwhile, in the world of jewellery, platinum may also be on the cusp of a renaissance. With gold prices approaching $3,500/oz, price-sensitive Chinese consumers are taking a fresh look at platinum as a prestigious yet accessible alternative to gold.

Platinum: A Rare Opportunity?

With strong industrial tailwinds, tightening supply, and a renewed consumer appetite, could platinum be entering a golden, or rather, platinum, era?

For investors considering a way to diversify their precious metals portfolio or gain exposure to materials key to the green energy transition, platinum might be back on the radar. However, insights from The Royal Mint indicate that plenty of customers may have spotted this trend early!

However, insights from The Royal Mint indicate that plenty of customers may have spotted this trend early!

Sources 

[1] Last LBMA fix of 2024 ($914 / £728.29) and LBMA PM fix of 25th June 2025 ($1,308 / £962.12)

[2] https://www.gov.uk/government/news/500m-boost-for-hydrogen-to-create-thousands-of-british-jobs

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