Not gold or silver, yet 'How could this be'… 'Surprised' by a 120% surge in one year

Commodity Focus

After gold and silver, platinum also 'rallies'… Biggest surge in 38 years

Up 121% over the past year

Affected by EU easing of internal combustion vehicle rules, among others

International platinum prices rose more than 120% in 2025, recording the largest annual gain in 38 years since 1987.

According to the New York Mercantile Exchange on the 31st, platinum futures traded around 2,148 dollars per troy ounce that day. On December 26, they hit an all-time high of 2,534.70 dollars. The annual increase for 2025 reached 121%. Palladium, another platinum-group metal, also rose 80% this year. Uncertainty over U.S. tariffs and sharp rises in other metals such as gold and silver pushed up platinum prices.

In particular, the European Union's decision on December 16 to withdraw its plan to fully ban sales of internal combustion engine vehicles from 2035 also fueled the rise in platinum prices. The European Commission decided to lower the post-2035 new-vehicle emissions reduction target from the original 100% to 90%. The EU's retreat from its original plan to allow only electric vehicle sales from 2035 means some internal combustion vehicles can still be sold.

About 40% of industrial platinum demand is used in the manufacture of automotive catalytic converters. Catalytic converters are devices that clean harmful gases emitted from internal combustion engines. Mitsubishi Financial Group called the EU's move "like injecting platinum-group metals with steroids." As a result of the EU action, platinum futures rose more than 21% in December alone.

Demand for platinum is also steadily increasing in medical devices and electronics. In medical devices, platinum use in diagnostic equipment and cancer treatment devices has grown significantly.

The U.S. administration's recent inclusion of platinum and palladium on the list of "critical minerals" essential to the economy and national security also affected platinum prices. With tariffs and other measures expected, physical supplies were brought into the United States in large volumes in advance, tightening supplies elsewhere. The start of futures trading in platinum-group metals in China in November 2025 also contributed to price gains. Large-scale speculative funds flowed in, and the Guangzhou Futures Exchange adjusted price limits.

Supply shortages are also a factor in the price rise. Production in South Africa, a major producer, has declined due to power shortages, aging mining infrastructure, and reduced investment in mines. The World Platinum Investment Council (WPIC) estimated that 2025 platinum production fell 2–6% from the previous year, dropping to a five-year low.

Recent platinum prices have exceeded experts' expectations. At the end of October 2025, Reuters surveyed 30 platinum experts, including analysts and traders, and the 2025 price forecast (median) was 1,249.50 dollars per troy ounce. At that time, platinum was trading above 1,500 dollars, and experts expected prices to fall by year-end. In the same survey, the 2026 platinum price forecast was 1,550 dollars per troy ounce.

Reporter Kim Joo-wan kjwan@hankyung.com