Over the past two months, platinum prices surged by an astounding 36%, marking the end of a 15-year period of stagnation. Even more captivating is the potential that this bullish market may have only just begun.
From a technical perspective, platinum’s explosive rise has shattered a three-year triangular consolidation pattern, firmly establishing a bullish trend. While a short-term overbought correction is possible, the market remains in the early stages of a bull run. This upward momentum is supported by three key drivers:
Despite concerns that the growing adoption of electric vehicles might dampen automobile-related demand for platinum, industrial demand has remained resilient over the past five years—accounting for around 30% of total consumption. Expanding needs in glass manufacturing, the medical sector, and hydrogen fuel cell vehicles (which are critical to the green energy transition) have helped to alleviate some pressure on the market. However, a persistent supply-demand imbalance has led to a near one-million-ounce shortage in the platinum market for two consecutive years, a trend that is expected to continue through this year.
In June 2025, West Red Lake Gold （TSXV: WRLG）‘s President and CEO, Gwen Preston, shared the company’s latest developments and next steps during an interview on METALS 100. Due to strong results, West Red Lake Gold Mines Ltd. is advancing its Madsen Gold Mine and expanding drilling at the Rowan target to 25,000m. On May 21, West Red Lake Gold approved an early restart of the Madsen Mine, ahead of schedule, setting the stage for a strong second half 2025. Also, West Red Lake highlights two new exploration targets at its Rowan Property, reinforcing its growth potential beyond a single-asset company.
The shortage has become particularly evident in the dramatic reduction of above-ground inventories, which plummeted from a peak of 5 million ounces in 2022 to only 2.16 million ounces this year—a decline of 57%. With platinum’s total market capitalization at a mere $3.84 billion, it pales in comparison to the vast scales of gold ($2.31 trillion) and silver ($340.57 billion). This tiny capital footprint means that even relatively small inflows of money can trigger significant price swings.
Several indicators point to a significant undervaluation of platinum:
In summary, the primary reasons to be bullish on platinum include the persistence of supply shortages, clear technical breakout signals, and its deep undervaluation relative to inflation, gold, currency supplies, and even stocks. Additionally, a potential bearish phase for the U.S. dollar could trigger a commodities supercycle that further benefits platinum. Although platinum is inherently cyclical and can experience significant volatility, it remains a valuable addition to a diversified portfolio—particularly for those combining gold holdings with silver, high-quality mining stocks, and platinum—to potentially capture excess returns.
Investors should therefore consider platinum not just as another precious metal, but as a signal indicator of broader market shifts and a unique opportunity in today’s complex economic landscape.
