The author, Mike Maharrey journalist and market analyst for MoneyMetals, has written extensively about the supply shortage in the silver market, which has outstripped demand for the third consecutive year in 2023. However, silver is not the only metal facing shortfalls. The platinum market is expected to post its largest deficit in a decade in 2024.
Although platinum does not receive as much attention as gold and silver, it can play an important role in wealth preservation and growth. It is a much rarer metal than gold, with a ratio of 30 to 1, and has multiple industrial uses, especially in the automotive industry for catalytic converters, as well as in chemical production, electronic applications and green energy.
Approximately 20% of platinum is used in jewelry, with investment demand accounting for the remainder. According to Johnson Matthey (catalytic converter manufacturer), the platinum market deficit will grow to 598,000 ounces in 2024, compared to 518,000 ounces last year. The World Platinum Investment Council (WPIC) reports that total platinum supply in the first quarter of 2024 was the second lowest since they began collecting data, while demand in the automotive industry reached a seven-year high.
Both jewelry and investment demand for platinum is expected to grow in 2024, with a projected shortfall of 476,000 ounces. According to Trevor Raymond, executive director of WPIC (World Platinum Investment Council), the platinum market will post a significant deficit for the second consecutive year due to sustained demand and supply vulnerability.
These dynamics could represent a buying opportunity for investors, as the platinum price has remained stable at just below $1,000 per ounce. Stiff price inflation, coupled with a supply deficit, could drive the platinum price higher.
Mike Maharrey. "The platinum market faces an unprecedented supply shortage." Money Metals.