Platinum, The New Gold?

While gold miners thrive with production costs of approximately ~$1,250/Oz and market prices above $3,000, they are making nearly three times their cost of production. In contrast, platinum miners face a challenging landscape, with costs ranging from $1,100 to $1,350/Oz, yet platinum trades at just $1,100, leaving many operating at or near a loss. The disconnect between the production price and spot price of gold relative to platinum highlights platinum’s undervalued status.

While gold is now three times more expensive than platinum, there is an opportunity for platinum to regain market share. If a mere fraction of gold’s industrial demand and the jewellery demand for white gold—originally developed as a more affordable substitute—is replaced with platinum, the industry could experience substantial growth.

Historically, platinum has traded at a premium to gold due to its rarity and industrial demand, while it also serves as a store of value.