Platinum prices hit 18-year high: What's behind the surge?
What's the story
As gold and silver continue to dominate headlines with their skyrocketing prices, platinum has quietly reached an 18-year high. The precious metal is now trading at $1,975 per ounce in the global market. In China's Guangzhou futures exchange, platinum rose to a record 541.80 Chinese yuan per kg on Thursday. The rise is due to investors betting on precious metals as a hedge against falling currencies.
Market dynamics
Platinum's industrial demand and supply challenges
Platinum is widely used in catalytic converters for automobiles, as well as in the chemical, refining, glass manufacturing, and electronics industries. The metal has gained nearly 115% this year alone. However, supply challenges in South Africa and Russia are tightening the market further. Several South African mines, which account for 70-75% of global supply, have reported lower production due to supply challenges.
Price trends
Platinum's price surge in India and global market outlook
In Chennai, platinum prices are currently ruling at ₹6,000-6,200 per gram. The Trading Economics website reports that rising economic and policy uncertainty in the US has driven investors toward alternative assets offering higher returns and diversification. The World Platinum Investment Council predicts a supply deficit of 69,200 ounces this year—the third consecutive shortfall—but expects a surplus of 20,000 ounces by 2026.