Investors Seek Gold Alternative - Platinum Hits $1,400 As Supply Deficit Deepens

Platinum prices have surged to their highest levels since 2014, driven by tightening supply, speculative investor flows, and a wave of buyers turning to the metal as a cheaper alternative to gold.

The precious metal climbed as high as $1,435 per ounce in the Asian trading session on Friday before taking a breather in the rally that gained over 50% from the April lows.

A key catalyst behind the rally is a deepening supply deficit. The World Platinum Investment Council (WPIC) recently noted that the platinum market is expected to record a deficit of 966 koz this year, followed by 992 koz and 896 koz in 2024 and 2023, respectively.

Also Read: Platinum Rallies To 4-Year High: Is $1,200 Just The Start?

"On the supply side, mine production remains at multi-year lows, while recycling has failed to rebound to pre-pandemic levels, " Edward Sterck, WPIC's ...