Platinum surprises with a high for years. It may not remain a snapshot. Other metals are also showing a dynamic that is making many market observers sit up and take notice.
The prices of several Platinum group metals (PGM) are currently on the upswing. Especially Platinum itself stands out: the metal recently traded at its highest level since May 2021.
Philipp Götzl-Mamba, Senior Manager Precious Metals at TRADIUM, summarises the development: "In the past four weeks, the price of platinum has risen by more than 25 per cent. Rhodium and ruthenium are also showing positive trends. Rhodium, for example, rose by almost nine per cent in June. Interest in ruthenium has also picked up, but so far there has only been a moderate price increase, although this could increase further."
At the same time, silver confirms its current strength and thus follows the assessment of Götzl-Mamba, which he published last week had given to the Handelsblatt.
Platinum group metals in supply deficit
A key driver of the current trend is the supply situation in the PGM segment. For the third year in succession, the Significant deficit in the platinum market from. Analysts from the World Platinum Investment Council currently put the expected supply shortfall for 2025 at 966,000 ounces. This is mainly due to declining production volumes in South Africa, the world's largest producing country, as reported by the industry portal Rohstoff.netand falling recycling volumes.
Even with Rhodium and ruthenium, supply is noticeably limited. Rhodium has recently shown similar strength in autumn 2023 and spring 2024. Ruthenium is currently developing independently of the rest of the PGM market with its own momentum. A market deficit of around 8,000 kilograms was recently forecast for 2025. By comparison, the primary production of ruthenium only amounts to around 30,000 kilograms. This is also reflected in the price trend since the beginning of the year: + 35 %. Ruthenium is used as a catalyst in the chemical industry, among other things.
Additional boost from jewellery production
Demand for platinum is currently being boosted by the jewellery sector, particularly in China. Jewellery also serves as an investment opportunity there. There are signs of an increased shift in jewellery production in favour of platinum. This is due to the high price discount of platinum compared to gold, which is making the metal increasingly attractive for jewellery manufacturers and end customers. Imports of platinum to China have recently increased significantly. In addition, China is increasingly endeavouring to implement a platinum future. In addition, there are currently significant financing premiums for platinum, which could currently favour a purchase over follow-up financing.
Silver benefits from structural deficit
The silver market is also showing a continued upward trend. Here, a structural supply deficit that has existed for several years is putting pressure on prices. Strong industrial demand, including from the electronics and solar industries, is outstripping global mine production. In addition, silver is undervalued compared to gold, making it an attractive investment. Also Silver like gold, has developed a monetary character over thousands of years.
