In India, investing during the festival of lights is an alternative to traditional gifting

The festival of Diwali is an annual, five-day celebration held by millions of Hindus, Jains, Sikhs and some Buddhists in India and across the world. It is known as the festival of lights, symbolising the power of light to overcome darkness, good triumphing over evil and knowledge over ignorance. For Hindus, the festival honours Lakshmi, the goddess of wealth, prosperity and fortune, and Ganesha, the lord of new beginnings and the remover of obstacles. Exchanging gold and gifts is an important part of Diwali as a way of expressing love and gratitude. Gifting jewellery is especially popular, and trends associated with the festival highlight the strong emergence of platinum as an increasingly in-demand jewellery category in India in recent years

Traditionally gold, but with platinum also an option due to its strong fundamentals, is becoming a recognised alternative to traditional gifting during Diwali. Since 2023 platinum has been a market in structural deficit. Demand is diverse and robust while supply is on a weakening trend. In the longer term, hydrogen-related applications offer a new, and growing, demand segment for platinum. Above ground stocks are diminishing, with current estimates indicating that only four months of demand cover will be in place by the end of 2025 and that stocks will be almost fully depleted by the end of 2029.

These factors, combined with tariff-related concerns and stronger-than-anticipated investment and jewellery demand, have contributed to market tightness which is underpinning the platinum price rally that began in May. Year-to-date, the platinum price has risen as much as 84%, although it remains at a significant discount relative to gold.