Meanwhile, Platinum ETFs and institutional positioning have surged, with investment demand forecast to hit 688,000 ounces in 2025. Analysts at TD Securities warn that ETF accumulation is now draining the free float – setting up the potential for tightening liquidity and a short-squeeze.
Platinum’s Supply Crisis Is Accelerating
The bullish setup doesn’t stop at demand. The supply side is even more explosive.
The World Platinum Investment Council, forecasts a 966,000 ounce deficit in 2025 – marking a third consecutive annual shortfall.
Meanwhile, physical stockpiles could drop below 2.5 million ounces, covering just 2 to 3 years of consumption at current pace.
Adding to the growing deficit – South Africa, which supplies over 80% of the world’s Platinum, continues to face electricity blackouts, mine shutdowns and capital shortfalls.
Even worse, Impala Platinum’s CEO recently warned that prices are still too low to justify new mine development – signalling no new supply is coming online anytime soon.
Platinum’s Industrial Edge: Utility Meets Scarcity
Gold may be money. But Platinum is utility.
More than 80% of Platinum demand comes from industry, especially automotive applications. As global internal combustion vehicle production rebounds, Platinum use is spiking.
Analysts at GSC Commodity Intelligence estimate, a 1% drop in EV market share could increase Platinum demand by 25,000 ounces.
Add to this Platinum’s growing use in hydrogen fuel cells, chemical production and green energy tech and you have a metal that’s both financially attractive and industrially indispensable.
Platinum Is 18x Rarer than Gold – Yet Trades at Half the Price
Platinum is among the rarest metals on earth. For every ounce of Platinum mined, 18 ounces of Gold are extracted. Yet today, platinum trades at less than 50% the price of Gold.
Historically, Platinum has outpriced Gold for decades – until the dislocations of the last 10 years. That historic relationship is now on the verge of snapping back – with force.
The Case for $4,000 Platinum
With supply eroding, demand booming and the Gold-to-Platinum ratio stretched to unsustainable levels, the stage is set for a parabolic move. Platinum at $4,000 an ounce may no longer be a bold forecast – it may be a matter of time.
Gold may be pausing. But Platinum is just getting started.
As GSC’s Head of Trading, Phil Carr notes: “Whichever way you look at it, the most asymmetric opportunity in the precious metals complex is here – and it’s Platinum”.
