Platinum price

Platinum is driven much more by industrial demand than gold or silver. Annual global platinum output is only around 190 tonnes. About 40% of that is absorbed by the car industry as a catalyst coating, mainly for diesel engines. The decline of diesel and the rise of electric drivetrains therefore weigh directly on demand. At the same time, fuel-cell technology — hydrogen vehicles and stationary equipment — remains an industrial use case, as PEM-cell catalysts also require platinum.

Supply is highly concentrated. About 70% of mined platinum comes from South Africa, roughly 140 tonnes a year, mainly from the Bushveld complex and sites operated by Anglo American Platinum, Impala Platinum and Sibanye-Stillwater. Russia is the second-largest producer at about 20 tonnes a year, mostly as a palladium by-product from Norilsk Nickel. Zimbabwe and North America add further supply. Because of this concentration, South African power shortages, Eskom failures, strikes and moves in the rand can be felt directly in London pricing.

The third group of drivers is investment demand and relative value. Platinum once traded above gold. The spread between the two metals, often expressed as the Pt/Au ratio, is a recognised gauge of the industrial cycle. When platinum trades at a sustained discount, physical investment products such as coins and bars, ETCs such as PPLT and PHPT, and industrial end-users may all increase buying. Jewellery demand, mainly from China and Japan, is also significant, although it has been on a slowing trend for years.