Platinum Group Metals (PGMs) surprised markets in 2025, outperforming gold by a wide margin. Platinum soared by 127% and palladium by 77%, compared to gold’s 64.6% gain. Early momentum was driven by supply concern, heightened exchange-for-physical (EFP) activity following President Donald Trump’s Liberation Day tariff announcement. In the latter half of the year, renewed demand for platinum jewellery in China, the launch of a new Chinese exchange, and expectations of softer emissions policies in Europe further supported prices.
PGMs also benefited from anticipated US demand growth after the termination of the $7,500 electric vehicle purchase incentive. Additionally, broader macro tailwinds – including US dollar weakness, inflationary pressures, and geopolitical uncertainty that boosted gold and silver – added to PGMs strength. We expect this positive trend to persist into 2026.
Platinum Group Metals (PGMs) surprised markets in 2025, outperforming gold by a wide margin.
Exchange for Physical (EFP)
Consistent with trends across other precious metals, NYMEX deliveries surged as President Trump’s Liberation Day tariff announcement approached. Dealers aggressively accumulated physical metal to hedge against potential supply disruptions if steep tariffs were imposed on imported metals. Platinum inventories in COMEX approved warehouses soared to 697koz in the first ten months – a 160% increase from the start of the year.
Palladium saw an even sharper rise, with stocks jumping 359% to reach 176koz. Russia remained the key concern, already under US and European Union (EU) sanctions. Russia is the largest producer of palladium and the second largest producer of platinum. Traders anticipated demand for PGMs to increase as the deadline for termination of the electric vehicle purchase was fast approaching. Meanwhile, dealers wanted to secure the inventories ahead of any potential tariffs that could discourage importers from bringing the metal into the country.
Inventory levels in both the US and China rose in 2025, depleting the above ground stocks for commercial use. Platinum and palladium holdings are now at their highest
levels in five years. China has been stockpiling these metals for several years, capitalising on periods of low prices and even introducing new PGM contracts on the
GFEX. Stockpiling exercises in the world’s two largest economies have tightened the inventory in the secondary market in London and Zurich, pushing borrowing costs
higher.
Platinum imports into China were significantly higher in Q2 2025 than actual domestic demand, surging to 878koz – up 33% year-on-year. Notably, this coincided with the quarter when US President Donald Trump announced his so-called ‘Liberation Day’ tariff plan.
Source: CME, LSEG
PGM stocks in COMEX warehouses
EU allows 10% fossil fuel vehicles beyond 2035
The EU has rolled back its earlier mandate for 100% zero-emission new car sales from 2035, replacing it with a 90% CO2 reduction target from 2021 levels. Automakers can now sell up to 10% of internal combustion engine (ICE), hybrid, and plug-in hybrid vehicles. PGMs remain critical for reducing emissions in these vehicles, with hybrid engines requiring higher PGM loadings than traditional ICE models. This shift is expected to drive stronger PGM demand in the coming years. Hybrid vehicle sales have already shown steady growth across major markets such as the US, Europe, and China in 2025.
PGMs also benefitted from positive momentum in gold and silver
In 2025, asset managers significantly increased investments in gold and silver as a hedge against portfolio risk. Both metals outperformed traditional assets such as bonds and equities, and this momentum spilled over into PGMs, lending additional support to prices. Global PGM ETFs recorded inflows of 10koz in 2025, following a substantial 313koz addition in the previous year.
