Platinum US$ 5000? Not implausible

Platinum US$ 5000? Not implausible

Predominantly as a consequence of a number of deplorable actions, the world order is now crumbling fast. However, the precious metal order is now very much on the way to reestablish itself, back to the old normal.

Historically the platinum price was equal or higher than the gold price. In 2025 platinum was up 122%, moving from US$ 925 to US$ 2060 Gold was only up 62%, moving from US$ 2655 to US$ 4319.

According to Edward Sterck, director of Research of the World Platinum Investment Council Ltd, this upward move was not only caused by an enduring (the 3^rd yr) shortage, but also (in my opinion equally important) the consequence of the renewed investor confidence.

Black Friday for most commodities, but very promising recovery continues for Platinum

Most probably caused by the appointment of Kevin Warsh, who is reputed to be in favour of a high US dollar, a substantial correction took place in many commodity markets. It is important to note that so far this correction has not broken the one yearlong upward trend of platinum.

A platinum price of US$ 5000 still cannot be excluded provided that gold stays at around US$ 4500 or more. This level is not unrealistic because in such case platinum will only have retaken its position of the Superior Store of Value, which it has enjoyed in the past during many years. Therefore, platinum continues to appear to be the superior store of value.

For convenience, the superior fundamentals of platinum compared with gold are reiterated below:

ANNUAL GLOBAL GOLD PRODUCTION: 117,700,000
OUNCES ANNUAL GLOBAL PLATINUM PRODUCTION: 7,100,000 OUNCES

VALUE OF ANNUAL GOLD PRODUCTION: US$ 594,385,000,000
VALUE OF ANNUAL PLATINUM PRODUCTION: US$16,152,500,000

TOTAL ABOVE-GROUND GOLD STOCK: 7,000,000,000 OUNCES
TOTAL ABOVE-GROUND PLATINUM STOCK: 9,200,000 OUNCES

PRODUCTION COST OF GOLD: ~$1,300 USD
MARKET PRICE OF GOLD: $5’050 USD

PRODUCTION COST OF PLATINUM: ~$1,100 USD
MARKET PRICE OF PLATINUM: $2,275 USD