The platinum price is currently in a significant upward trend, fueled by several factors. Last week, platinum futures on the NYMEX rose by about 4%, reflecting strong demand and a persistent supply deficit.
The Main Drivers of the Platinum Uptrend
Supply Deficits
According to the World Platinum Investment Council (WPIC), the platinum market has been in deficit since 2023. A deficit of around 992,000 ounces was recorded for 2024, and a similar deficit of about 966,000 ounces is expected for 2025. This supply deficit is leading to a market tightening that drives the price upwards.
Rising Demand
Demand is particularly increasing due to the recovery in the automotive industry and heightened investments from China. Additionally, interest in safe havens amid global trade tensions is providing further buying impulses for platinum as a precious metal.
Trade Policy Tariffs
The announcement of high U.S. tariffs on imports from Canada (35%) as well as additional tariffs on other trading partners is increasing uncertainties in global trade and thereby strengthening the appeal of commodities like platinum as a hedge against economic risks.
Market Position and Price Development
Since the beginning of the year, platinum has shown an impressive performance, with a price increase of over 50%. The gold-platinum ratio has shifted significantly in favor of platinum, signaling further investor interest.
In summary, the combination of a structural supply deficit, rising industrial demand especially from the automotive sector, and geopolitical trade tariffs are significantly driving the current price increase in platinum. These factors contribute to a sustainable rally in the metal price, with potential for further gains in the near future.