Platinum Price Surge: Amidst the continued rise in the prices of gold and silver, platinum is also experiencing a significant increase. Its price is also steadily increasing.
Platinum Price Surge: Gold and silver prices are steadily rising. Rising gold prices ahead of the festive season have alarmed people, and it is gradually becoming unaffordable for the average person. Meanwhile, platinum has joined the race to compete with gold and silver. Its price is also steadily increasing.
Nearly 70% jump in pricesPlatinum prices have risen nearly 70% this year. Gold has gained 51% and silver 58%. However, it's worth noting that while platinum prices have risen, they remain 28% below their May 2008 high of $2,250 per ounce. Platinum prices are projected to decline by 8% each year in 2023 and 2024, while 2022 saw a modest increase of 10%.
Why is the price increasing?This surge in platinum prices is due to a supply shortage and a surge in demand. Platinum is used in jewelry, as well as in industries like the auto sector, petrochemicals, and hydrogen energy. This is why both its futures prices and demand are seeing a surge.
Ritesh Jain, founder of Pinetree Macro, told Moneycontrol, "Platinum is now catching up with gold. Until recently, platinum was even more expensive than gold. Now, gold is almost three times more expensive than platinum. People are using platinum instead of gold in jewelry. Furthermore, the supply of platinum from mines is not increasing, leading to a shortage."
Prices may increase furtherAccording to the World Platinum Investment Council, the platinum market is in a continuous decline. It could fall by 850,000 ounces in 2025. This is the third consecutive year of supply shortages, putting the market under pressure. Demand is growing relative to supply. More than 70% of platinum is used in green technology or catalytic converters in vehicles.
Money Control, citing Kavita More, commodity research analyst at Choice Broking, reported that platinum demand will remain strong through 2025 and beyond. A supply shortage of 500,000 to 850,000 ounces is expected each year. South Africa is home to the world's largest platinum mines, but poor weather, technical issues, and supply chain disruptions have led to a significant decline in production.
PC:ABPNews
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