Insights 
VT 
Platinum prices faced pressure due to corrections in Gold and Silver but saw a quick recovery, trading at around $1,610 per troy ounce. This is $120 short of the 12½-year high recorded recently. Although undervalued compared to Gold, Platinum’s price was bolstered by potential tax changes in China.
China announced the removal of a tax rebate on sales of domestically produced and imported Platinum effective 1 November, introducing a 13% tax. This caused Shanghai Gold Exchange prices to rise above global market prices, encouraging imports before the tax change.
Impact of China Tax Changes
Post-tax, China’s demand for Platinum may decrease, potentially affecting prices. China has represented over 30% of global Platinum demand in the past three years.
As of October 24, 2025, we are seeing platinum prices holding strong near $1,610 an ounce, largely because of a rush to import the metal into China before a new tax is implemented. The premium for platinum on the Shanghai Gold Exchange has widened to over $80 an ounce this week, creating a clear arbitrage incentive that will vanish in a few days. This artificial demand is set to end abruptly on the November 1 deadline, which is just one week away.
The impending tax change strongly suggests that a significant price correction is imminent after the deadline passes. Traders should consider positioning for a downturn in the platinum price for the weeks following November 1. This could involve shorting December 2025 or January 2026 futures contracts, or purchasing put options to capitalize on the expected drop in demand.
Market Outlook and Trading Strategies
This view is reinforced by recent market data, as China has consistently accounted for over 30% of global platinum demand for the past three years. The latest World Platinum Investment Council report from Q3 2025 has already flagged this tax change as a major headwind, forecasting a potential market surplus in early 2026. We remember seeing similar, though less pronounced, price shocks when China adjusted its policies on other industrial metals back in the late 2010s.
While platinum’s significant undervaluation relative to gold might offer some long-term price support, this fundamental is unlikely to withstand the immediate demand shock from its largest consumer. The Chinese catalyst is simply too large to ignore in the short term. Therefore, a pair trade, going long gold while shorting platinum, could be a strategy to hedge against broader precious metals weakness while isolating this specific platinum-related risk.
