Platinum Price Breaks Through 800 Yuan Mark, Supply-Demand Imbalance and Emerging Demand Drive Market Rally

Recently, the platinum market has experienced frequent fluctuations, with prices reaching new highs. From jewelry retail to futures markets, this precious metal once overshadowed by gold is quietly rising. Luk Fook Jewelry’s 999 platinum is now quoted at 815 yuan per gram, Chow Sang Sang, Chow Tai Seng, and other established jewelers’ 950 platinum is approaching 782 yuan per gram, while traditional gold shops like Lao Feng Xiang and Lao Miao’s platinum prices have surpassed 720 yuan per gram. Behind these figures reflects profound changes in the supply and demand sides of the platinum market.

Retail prices surge dramatically, consumers feel the impact most deeply

How astonishing is the increase in platinum prices? The data is the most convincing. Shenzhen Shuibei, a major wholesale market for platinum, saw wholesale prices hovering just over 300 yuan last second half of last year. Now, prices have risen straight to around 470 yuan, an increase of over 50%. The retail surge is even more intense, with some styles of platinum jewelry prices doubling or more. For example, a 10-gram platinum necklace priced at 782 yuan per gram plus 200 yuan in craftsmanship costs totals nearly 8,000 yuan, with the per-gram labor cost reaching about 100 yuan.

What’s more troubling for consumers is the price gap between buying and selling. If you purchase platinum jewelry today at 800 yuan per gram, you might only get around 400 yuan per gram when cashing out, effectively halving the value. Such a gap creates enormous financial pressure for consumers looking to invest or preserve value.

South African mines under tension, platinum supply remains under pressure

The global platinum market heavily depends on South Africa, which accounts for the majority of worldwide production. Since 2026, South African mines have faced frequent issues—delays in equipment maintenance, labor strikes, and disputes—leading to a significant decline in output. Global platinum inventories are already low, and this production drop worsens the situation.

Market participants holding physical platinum are beginning to withhold sales, causing rental rates for platinum to rise. Expectations of shortages are spreading, pushing up spot prices. Interestingly, platinum, once overshadowed by gold, now performs on par with gold. Since the beginning of the year, platinum futures have surged over 110%, compared to a 64% increase in gold, indicating a much faster growth rate for platinum.

Automotive and hydrogen energy demand explode, industrial applications drive platinum

Many people associate platinum mainly with jewelry, but industrial applications are actually the core driver of demand. In traditional internal combustion engine vehicles, platinum is widely used in exhaust catalysts; in hybrid vehicles, platinum demand remains substantial. These are rigid, relatively stable demands.

However, the real game-changer is emerging energy sectors. As the world pushes toward carbon neutrality, hydrogen energy and fuel cell technologies are gaining attention. Platinum is a key material in hydrogen fuel cells. The amount of platinum required for a hydrogen-powered vehicle can be several times, even dozens of times, higher than that for traditional fuel vehicles. Governments worldwide are increasing investments in hydrogen energy industries, and related companies are accelerating capacity expansion, leading to explosive growth in platinum demand.

Hot money floods into futures markets, boosting platinum rally

Gold prices have already hit record highs, prompting some investors to seek alternative assets. Platinum, a relatively niche precious metal with hedging properties, has entered investors’ radar. In the futures market, open interest in platinum contracts is rapidly increasing, and related ETF products are expanding. Capital inflows push up futures prices, which in turn influence the spot market, creating a positive feedback loop.

Jewelry stores, facing rising costs, are forced to raise retail prices. In this process, little attention is paid to consumers’ actual purchasing power. The rising prices and capital inflows form a self-reinforcing cycle, further accelerating platinum’s rally.

Investment and consumption dilemma: how to respond rationally?

For ordinary consumers, the current platinum market is indeed a dilemma. Couples planning to buy platinum wedding rings are hesitant at prices over 800 yuan per gram—buying strains their budgets, while not buying raises fears of further price increases. This anxiety is especially pronounced in the physical platinum market.

From an investment perspective, physical platinum jewelry is even less ideal. High craftsmanship costs, severe discounts on resale, and relatively low liquidity make physical platinum unsuitable for value appreciation. Serious investors usually prefer futures or ETFs, rather than rushing into jewelry stores to buy ornaments.

Future outlook: supply and demand will determine how high platinum can go

The future trend of platinum prices depends on two key factors. First, whether South African mines can maintain stable supply. If issues at mines continue to worsen, global platinum shortages will intensify. Second, the actual sales of hydrogen fuel cell vehicles. If the hydrogen energy industry experiences explosive growth, industrial demand for platinum will stay high.

Conversely, if South African production gradually normalizes or capital flows shift away, prices may retreat. The market is always full of variables; current high prices mainly reflect short-term supply-demand imbalances and capital chasing. For ordinary participants, rationally assessing risk tolerance is the best strategy in this rally.