Platinum Awakens
Platinum has jumped over 30% this year to a four‑year high, driven by rising Chinese demand and jewellery sales, while deepening supply deficits and dwindling inventories strengthen its case as an undervalued store of value with greater upside than gold.
Platinum Awakens
Platinum prices have soared in the last few weeks, reaching levels not seen in several years. Platinum surged to over $1,200 per ounce, marking a four-year high and a year-to-date gain of over 30%.
Chinese demand has been a primary catalyst, with platinum imports rising 47% month-on-month in April to their highest level in a year. This uptick is fuelled by strong interest in platinum bars, coins, and jewellery, as the metal remains relatively undervalued compared to gold. Notably, while gold jewellery sales in China dropped 32% year-on-year in Q1 2025, platinum jewellery sales rose 26% in the same period.
The platinum market is now facing its third consecutive year of substantial supply deficits. Forecasts for 2025 project a shortfall of 476,000 to 966,000 ounces — up to 12% of global demand. These deficits are exacerbated by ongoing production challenges in major mining regions, limited recycling, and a lack of new mining projects.
Investor Interest and Strategic Value
Renewed investor interest in precious metals is supporting platinum’s rally, especially as gold trades at historic highs and concerns about global economic stability persist.
As deficits deepen and inventories dwindle, platinum is increasingly seen not just as an industrial metal but also as a superior store of value.
Why Platinum?
With gold at record levels and the risk of corrections looming, platinum’s relative undervaluation and growing strategic importance could see it begin to outperform gold as a store of value in the years ahead.
The market is approaching a “tipping point” where persistent deficits and shrinking inventories could trigger further sharp price increases.
Platinum’s evolving role — both as an industrial commodity and a store of value — positions it as a key asset to watch.
Our Conviction
The time has arrived to look at platinum, which shares the many qualities of gold and probably has more upside potential.
It’s our sincere conviction that it will only take a small change of mindset before platinum will start to outperform gold as a store of value.
Our opinion is not based on one, but on many considerations, which we shall share with you in our next articles.
