## [# PPLT Soars in 2025 as Platinum Price Hits Fresh High](/sections/features/pplt-soars-2025-platinum-price-hits-fresh-high)
# PPLT Soars in 2025 as Platinum Price Hits Fresh High
\- The precious metal is closing some of its year-to-date gap with gold.
\- A key driver of the tightening market is falling mine supply.
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[By Sumit Roy ](/authors/sumit-roy)
May 21, 2025
Edited by: David Tony
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All that glitters isn’t gold; sometimes it’s platinum.
The precious metal surged this week, hitting $1,085 per ounce, its highest level in over a year. That rally helped lift the [**abrdn Physical Platinum Shares ETF (PPLT)**](/pplt), the largest U.S.-listed platinum ETF with over $1 billion in assets, to an 18.2% year-to-date gain.
## PPLT Gains as Supply Tightens
The move came on the heels of a bullish quarterly report from the World Platinum Investment Council (WPIC). In its [Platinum Quarterly](https://platinuminvestment.com/supply-and-demand/platinum-quarterly) report published Monday, the group projected that the global platinum market would see a deficit of 966,000 ounces (966 koz) in 2025, up from its previous forecast of 848 koz. If that projection holds, it would mark the third-consecutive year of “substantial deficits,” according to the council.
A key driver of the tightening market is falling mine supply. In the first quarter of 2025, global platinum production dropped 13% year over year, reaching its lowest level since the second quarter of 2020 at the height of the Covid-19 pandemic. For the full year, refined output is expected to decrease 6%, outpacing the 4% projected decline in demand.
While concerns over global trade have loomed large in recent months, WPIC noted that weaker 2025 demand is mainly the result of a cyclical slowdown in glass demand, particularly in [China](https://www.etf.com/topics/china). Meanwhile, other sectors like automotive, jewelry and investment demand remain sensitive to geopolitical shifts but have shown resilience.
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## Platinum Market Breakdown
Platinum's supply and demand picture remains highly concentrated. Roughly 71% of this year’s global supply is expected to come from South Africa, making the metal particularly vulnerable to local production disruptions.
On the demand side, 38% is expected to come from autocatalysts, which use platinum to reduce vehicle emissions; 27% is tied to industrial applications; 26% is from jewelry demand; and 9% is from investment demand, including bars, coins and ETFs.
Despite the recent surge, platinum is still trailing [gold](https://www.etf.com/topics/gold) in performance. Year to date, the [**SPDR Gold Trust (GLD)**](/gld) is up 26%, outpacing PPLT.
Over the past decade, the gap is even more stark. Gold is up 163%, while platinum has lost 12%—a reflection of gold’s growing role as a global safe haven and reserve asset, drivers that platinum lacks.
Investor flows tell a similar story. Even with the recent rally, PPLT has seen $64 million in outflows in 2025, suggesting many investors remain unconvinced that platinum’s recent strength marks a lasting turnaround.
Still, with supply tightening and deficits deepening, some investors are starting to take notice.
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[ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy)
Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including… [View Bio](/authors/sumit-roy)
Related Topics [Platinum](http://www.etf.com/topics/platinum)
[Precious Metals](http://www.etf.com/topics/precious-metals)
[Gold](http://www.etf.com/topics/gold)
[Commodities](http://www.etf.com/topics/commodity)