Platinum Jewelry Demand Surge in China Creates Opportunities for Mining Companies

The global platinum market is undergoing a substantial transformation driven by surging jewelry demand, particularly in China, creating new opportunities for mining companies. Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) is strategically advancing its Waterberg Project, a bulk underground platinum, palladium, rhodium and gold deposit located in South Africa, to capitalize on this growing market trend. In 2025, platinum is experiencing a renaissance in the global jewelry market, driven by increased consumer interest, particularly in China. This uptick in demand is revitalizing the jewelry sector while influencing broader platinum market dynamics, including supply constraints and pricing structures.

The global demand for platinum jewelry is witnessing a notable resurgence, with China leading this charge. During the first quarter of 2025, Chinese platinum jewelry fabrication increased by 26% year-on-year, supported by platinum's price discount relative to gold. This trend is expected to continue throughout the year, with industry forecasts indicating that total platinum supply in 2025 will reach the lowest level in five years. This supply constraint, combined with rising demand, creates a favorable environment for producers like Platinum Group Metals to benefit from improved market conditions.

Platinum Group Metals is exploring new technologies to enhance the utilization of platinum group metals in various applications, positioning the company to benefit from both the jewelry market growth and potential industrial applications. The combination of rising demand and constrained supply creates a compelling market dynamic for platinum producers. The company's strategic focus on the Waterberg Project comes at a critical time when market fundamentals are strengthening significantly. The project represents one of the substantial platinum group metals deposits that could help meet the growing global demand while benefiting from favorable pricing conditions driven by the current supply-demand imbalance.

The Waterberg Project's development timing aligns with market conditions where platinum's discount to gold prices is driving increased consumer adoption in jewelry markets worldwide. This price differential makes platinum an attractive alternative to traditional gold jewelry, particularly in price-sensitive markets. The project's potential to contribute to global platinum supply comes when industry analysts project sustained demand growth across both jewelry and industrial sectors. This convergence of factors positions Platinum Group Metals to potentially capitalize on one of the most favorable platinum market environments in recent years, with the Waterberg Project serving as a key asset in the company's strategic response to evolving market conditions.