Platinum just smashed a record—here's why it matters
Platinum prices hit an all-time high of $2,361 per ounce this Wednesday, capping a 10-day winning streak and more than doubling in value this year—the biggest annual gain since Bloomberg began compiling data in 1987.
The main drivers? A global supply crunch and pricier financing making the metal harder to get.
What's behind the platinum squeeze?
South Africa, which supplies most of the world's platinum, is dealing with ongoing production hiccups—so for the third year in a row, there's not enough to go around.
Meanwhile, traders are stockpiling over 600,000 ounces in US warehouses as they brace for possible new tariffs.
Demand from China is also heating up, especially with fresh futures listings pushing local prices even higher.
Who's feeling the impact?
Industries like car manufacturing and jewelry are now leaning toward leasing platinum instead of buying outright because borrowing costs have shot up.
At the same time, more investors are treating platinum like a safe-haven asset alongside gold and silver when markets get shaky.
Even palladium—platinum's close cousin—got a boost this week.