Platinum prices have jumped over 35% this year, outpacing gold and silver. This rare metal is making waves in the precious metals market. Here’s why platinum is trending and what investors are saying.
Supply Deficits Spark Rally
The World Platinum Investment Council reports a third consecutive year of supply shortages. South Africa, which produces approximately 80% of the world’s platinum, faces significant mining challenges. Demand from automotive catalytic converters and green tech is outstripping supply, driving prices higher.
Investor Interest Surges
Platinum ETFs have seen 70,000 ounces of inflows since January. Speculative trading is also on the rise, with futures positions increasing, according to Investing.com. Experts like Jonathan Krinsky at BTIG say platinum is catching up as investors diversify from gold. This shift is fueling its stellar performance.
Industrial and Investment Appeal
Platinum’s dual role as an industrial and investment asset sets it apart. Its use in hydrogen fuel cells and electronics adds growth potential. CNBC reports that platinum’s rally could outshine gold’s if industrial demand continues to climb. Investors are looking at its long-term value.
