Platinum: Strong Gains and Market Deficit
Platinum was able to increase by about 5.3% last week. This development should be viewed against the backdrop of a deepening market deficit. According to current forecasts from the World Platinum Investment Council, a deficit of 476,000 ounces is expected for 2025 – the third consecutive year of under-supply. Despite a decline in total demand of about 4%, stronger than expected demand from China and an anticipated contraction of global supply of also around 4% led to rising prices.
Additionally, uncertainties regarding the US economic situation and the downgrade of US creditworthiness have further increased the demand for safe investment forms like platinum. Over the course of the year, the price has already risen by over 17%, with a rate of around $1,208 per troy ounce on June 13.
Palladium: Weaker Dynamics Despite Deficit
Palladium showed less pronounced dynamics during the same period. On Friday, June 13, the price was $1,023 per troy ounce – a decrease of about 3.5% compared to the previous day. Nevertheless, palladium has significantly increased month-on-month (+7.96%) and has also risen by over 13% since the beginning of the year.
The market continues to be in deficit: for the current year, a shortfall of around 254,000 ounces is forecasted – though this is lower than the previous year. The lesser traction compared to platinum is mainly explained by its greater dependence on the automotive sector as well as the increasing share of electric vehicles in China.
Structural Differences Between Platinum and Palladium Markets
| Feature | Platinum | Palladium |
|---|---|---|
| Main Application | Jewelry, Industry, Catalysts | Catalysts (Automotive Industry) |
| Market Situation | Third Year of Deficit | Deficit is Decreasing |
| Price Dynamics | Strong Increase (+17% YTD), High Volatility | Moderate Gains (+13% YTD) |
| Impact of Electrification | Low | Very High |
| Investment Incentives | Safe-Haven Demand | Industrial Demand Dominates |
Conclusion
The diverging price developments between platinum and palladium reflect structural differences: While platinum strongly benefits from investment demand and a persistent supply deficit, palladium remains more tied to the developments in the automotive market. For investors, this means:
- Platinum currently offers attractive opportunities due to its role as a safe-haven asset.
- Palladium remains volatile; long-term perspectives depend on the success of the electrification wave.