Top 11 Years in Platinum! Geopolitical Risks and Chinese Demand Blow Prices

📈 Ounces Of Platinum Price Rises To 11-Year High

As of June 20, 2025, the price of an ounce of platinum reached its highest level since September 2014 at $1,352.08; its gain has exceeded 43% since the start of the year.

Platinum became the leading metals as rising geopolitical tensions in the commodity market, uncertainty in the Fed's monetary policies and high volatility with the US-China tariff events continued. With the profit selling coming soon, prices fell to $1,290; however, the underlying trend remained strong.

📉 Combination of Supply Problems and Demand Shock

Production outages in South Africa and Russia have increased the risk of disruptions in supply chains. On the other hand, heavy platinum imports for China's jewelry sector and the need for reuse of the automotive industry have driven demand to the top. These two factors created a rapid upward pressure on prices.

🌍 Global Geopolitics and U.S. Policies

The US President's tariff threats have sent the American consumer and industry into uncertainty. This made safe haven assets (especially gold and platinum) attractive. At the same time, the prospect of a slowdown in electric vehicle incentives in the automotive sector has revived demand for platinum used in exhaust systems.

🚗 Platinum Stands Out in Automotive Strategies

Discourses that incentives for electric vehicles could be reduced have increased the focus directly on internal combustion engines. This signals that the use of platinum may increase again in the coming quarters. The volatility that discussions between the president and industry leaders can create can influence investor decisions.

💎 Chinese Jewellery Demand Turning Point for Platinum

The import boom that China realized in April and the vitality in the jewelry industry seriously fueled the demand for platinum. Companies competing with alternative metals turned to more economical platinum due to high gold prices, which provided a sustainable upward momentum on the price.

🌐 Expert Opinion: Relatively Cheap Compared to Gold

Executives of international platinum investment platforms are united in the view that platinum remains cheap relative to the price of an ounce of platinum. This makes this metal more attractive to investors looking for portfolio diversification. In addition, forecasts of increased jewelry demand in Asia and the West signal a positive signal in terms of long-term demand.

📊 Macroeconomic and Market Strategy Dimension

The increase in freight costs also affects other members of the commodity basket, while more volatility is seen in the prices of metals whose volume is smaller, such as platinum. While this environment increases arbitrage opportunities, risks also rise. The commodity ratio of portfolios is being revisited.

🤝 Investor Psychology and Valuation Perspective

Investors are raising the safe asset ratio in their portfolios, taking into account the uncertainty and geopolitical risks caused by the trade war. Platinum's falling supply, rising demand, and lower nominal levels relative to gold offer opportunities for revaluation, but upside risks on prices and Fed decisions could suddenly create new direction.

🧠 Expert Review

While these price movements provide protection against geopolitical shocks in the short term, they highlight Chinese demand and automotive dynamics in the medium term; in the long term, a volatile course is likely with supply problems and a gradual improvement in geopolitical stability. Traders should avoid excessive positions and keep an eye on the risk-base balance.

🛑 Disclaimer

This content is created by Investment Desk AI and does not constitute investment advice. You should make your decisions based on your own research and expert advisors.

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