After a prolonged period of neglect, platinum is making a remarkable comeback, fueled by tightening supply and renewed investor interest. Following a decade of subdued performance, the precious metal has surged sharply, challenging gold’s dominance in the precious metals market.
The World Platinum Investment Council forecasts a third consecutive supply deficit this year, with demand expected to exceed supply by nearly 1 million ounces. This scarcity has reignited enthusiasm among commodity traders who now see platinum as a more affordable store of value compared to gold, which remains near record highs amid ongoing US-China trade tensions.
In just six trading sessions, platinum’s price jumped over 15%, surpassing $1,200 per ounce—the highest level since May 2021. Year-to-date, platinum has gained 32%, outpacing gold’s 26% rally.
Fund managers like Sam Berridge from Perennial Partners are taking notice. Berridge is considering adding a physical platinum exchange-traded fund (ETF) to his Strategic Natural Resources Fund, citing the challenged supply outlook and a near absence of new exploration activity worldwide. “Prices need to rise or new discoveries must be made, but exploration is virtually non-existent,” he said. Berridge described the past decade as “a pretty dismal market” but expressed optimism for a potential turnaround.
Platinum’s industrial uses contribute significantly to its demand. It plays a crucial role in catalytic converters that reduce vehicle emissions and is essential in manufacturing laboratory equipment. More recently, Chinese demand for platinum in jewelry, bars, and coins has surged, with April imports hitting a 12-month peak as investors sought the metal’s relative discount to gold.
Historically, platinum traded close to gold’s price, but it lagged for years as gold prices soared, driven partly by geopolitical risks and aggressive US tariffs introduced during the Trump administration. Central bank purchases since 2022 further propelled gold’s premium, reaching a record in April when one ounce of gold cost the equivalent of 3.6 ounces of platinum.
However, a 90-day US-China trade truce improved market sentiment, encouraging traders to take profits in gold and rotate into other precious metals such as platinum and silver. Ole Hansen, head of commodity strategy at Saxo Bank, noted increased investor interest in these alternatives amid stalled bullion demand.
ETF holdings of platinum have surged by 111,000 ounces in the two weeks leading to June 5, reaching a 10-month high of 3.29 million ounces. With limited platinum mining options listed on the Australian Securities Exchange (ASX), local investors are increasingly turning to ETFs to access the metal’s rally.
Among ASX-listed miners, Zimplats Holdings—operating platinum mines in Zimbabwe—has seen its stock rise 57% in the past month, though it remains down more than 50% from 2022 highs. Southern Palladium, planning a new platinum mine in South Africa, has soared 118% over the last month. Meanwhile, Chalice Mining, which made a landmark discovery of platinum group elements at Western Australia’s Gonneville deposit, exited the market in 2021, with the project yet to be developed.
As platinum recaptures investor attention and industrial demand grows, the white metal appears poised to reclaim a stronger position alongside gold in the global precious metals arena.
