Platinum prices have been affected by changes in Gold and Silver prices but have quickly bounced back, currently trading at about $1,610 per troy ounce. This is $120 below the recent 12½-year high. Although Platinum is undervalued compared to Gold, its price received a lift from expected tax changes in China. China plans to remove the tax rebate on both domestic and imported Platinum sales starting November 1, replacing it with a 13% tax. This decision has caused prices on the Shanghai Gold Exchange to rise above global market prices, prompting increased imports before the tax kicks in.

Impact of China Tax Changes

After the tax is implemented, China’s demand for Platinum may decline, potentially hurting prices. For the last three years, China has made up over 30% of the world’s Platinum demand. As of October 24, 2025, Platinum prices remain strong around $1,610 an ounce, mainly due to a surge in imports into China before the new tax. The premium for Platinum on the Shanghai Gold Exchange has increased to over $80 an ounce this week, creating an opportunity for traders that will soon disappear. This temporary demand boost is expected to end on the November 1 deadline, just one week away. The upcoming tax change suggests that a notable price drop is likely after the deadline passes. Traders should prepare for a potential decrease in Platinum prices in the weeks following November 1. This might involve shorting December 2025 or January 2026 futures contracts or buying put options to benefit from the expected decline in demand.

Market Outlook and Trading Strategies

This perspective is supported by recent market data, showing that China has made up over 30% of global Platinum demand for the past three years. The latest report from the World Platinum Investment Council for Q3 2025 has already noted the tax change as a significant challenge, predicting a possible market surplus in early 2026. We recall similar price shifts when China adjusted policies on other industrial metals in the late 2010s. While Platinum’s significant undervaluation compared to Gold may provide some long-term support, this factor is unlikely to hold up against the immediate demand drop from its biggest consumer. The impact from China is too significant to overlook in the short term. Thus, a strategy that involves going long on Gold while shorting Platinum could help protect against broader weaknesses in precious metals while managing specific risks associated with Platinum. Create your live VT Markets account and start trading now.

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