Platinum Prices Hit Four-Year High Amid Market Tension
Platinum prices have continued their upward trend, hitting their highest point in over four years. This follows a sixth consecutive session of gains, amid increasing signs of market strain.
The spot price of platinum reached $1,200.95 per ounce, marking a 2.7% increase and the highest level since May 2021, after a 10% rise last week.
According to Alexander Zumpfe, a trader at Hellèus Metals, the increase is fueled by a mix of tightening supply expectations, improved industrial sentiment, and a broader rally in precious metals.
There are ongoing expectations for another annual supply shortfall.
Back in early 2025, a significant amount of platinum was brought into the United States due to investor concerns about potential tariffs on metals under President Trump, which raised the borrowing costs of these metals.
While that platinum is now returning to U.S. warehouses, lease fees in London and Zurich have remained exceptionally high.
These fees, typically close to zero, have surged to unprecedented levels this year, with monthly lease rates exceeding 13.5% on an annualized basis.
“Tension in the market has been building since December,” noted Ed Stake, the research director at the World Platinum Investment Council. He added that while the spill from Nymex might alleviate some pressure, overall, the market is still moving toward a deficit.
Moreover, holdings in platinum-backed funds have reached a peak not seen in 10 months, with current spot prices trading higher than futures prices.
Near 1 Million Ounce Deficit Expected in 2025
The World Platinum Investment Council (WPIC) anticipates a supply deficit of around 1 million ounces this year, driven by strong demand and limited production.
Platinum’s primary applications include catalytic converters, experimental equipment, and as an investment asset for vehicles. Notably, prices have surged by 32% since the year’s beginning, compared to a 26% rise in gold.
Adam Rozencwajg, managing partner of Goehring & Rozencwajg, shares his insights on why metals in the Platinum Group are gaining attention again. You can check out the full interview with Mining.com host Devan Murugan for more details.
