PLATINUM IS GAINING STRENGTH

IS A DRAMATIC UPTICK ON THE WAY?

- BY MIKE FULJENZ

Gold is clearly the winner in the precious metals trio, with silver winning the second-place medal, but platinum has lagged behind gold and silver. At the end of 2015, platinum and gold both traded barely above $1,000, but since then, gold has tripled to $3,000 an ounce and above. To the contrary, platinum has hovered around $1,000 an ounce in a narrow trading range between $800 and $1,200 for about a full decade.

That began changing in 2025. From a low of $894 an ounce during the tariff negotiations on April 7, platinum rose 22%, reaching $1,090 on May 21. It hasn't matched gold’s gains yet, but it is challenging silver as the No. 2 performing metal in 2025. It is perhaps because, like silver, platinum rises or falls more on global industrial demand than on the factors that fuel gold: inflation, global crises and its reserve currency status.

"At the end of 2015, platinum and gold both traded barely above $1,000, but since that time gold has tripled to $3,000 an ounce and above."

In short, the five major factors that support a continued rise in platinum are:

• Platinum is far rarer than gold. Only one ounce of platinum is mined each year for every 20 ounces of gold mined each year.

• Platinum's uses in the auto industry and other industrial processes are stable sources of demand.

• Platinum's use in fuel cells and green hydrogen production are adding new demand sources.

• In addition to its industrial demand, platinum also enjoys increasing investment demand.

• The platinum market is in a supply deficit, with demand outpacing supply, which causes rising prices.