The platinum price has now breached above US$1,000 an ounce following soaring demand for the precious metal.
As of 8.20am AEST today (20 June), the price of platinum is US$1,315.54, according to ABC Bullion.
The recent price breakout above US$1,300 is still far off platinum’s all-time high of over above US$2,200, however it seems it is beginning to catch up to precious metal cousins gold and silver, following years of relative underperformance.
ABC Bullion says it has seen the surge in demand first-hand this year, with interest in platinum bars, coins, and pool allocated investment solutions more than tripling in recent months.
According to the World Platinum Investment Council, investment demand for platinum bars and coins totalled almost 300 tonnes per annum in 2019.
By the end of this year, demand for platinum bars and coins is set to reach 438 tonnes – a jump of almost 50%, with demand from China in particular poised to surge during H2 2025.
Industrial and automotive demand also continues to increase, driven by the precious metal’s role in reducing energy requirements, harmful emissions, and enabling the burgeoning hydrogen economy.
Over the past 125 years, on average platinum has been twice as valuable as gold on a per ounce basis. However, even amid the recent price spike, investors today still need some 3 ounces of platinum to afford one ounce of gold.
The World Platinum Investment Council says the current imbalance is unlikely to last, with the undervaluation of platinum relative to gold likely to narrow between now and 2030.
Write to Adam Orlando at Mining.com.au
Images: ABC Bullion
