With the world increasingly shifting towards clean energy and electronics, the demand for platinum over the past decade has skyrocketed, outpacing any increments in supply. Looking ahead to 2025, several factors suggest a continued deficit in platinum production compared to global demand.
In the auto industry, platinum’s use for catalytic convertors in diesel engines faces stiff competition from the rising wave of electric vehicles. Yet, the metal’s popularity in hydrogen fuel cells, jewellery, electronics and rare-occasion investment provide a robust backbone for its global demand.
Moreover, geopolitical tensions and natural disasters can rapidly disrupt mining operations, which has historically sparked sudden surges in platinum prices.
In fact, most platinum deposits are found in a few specific locales, primarily South Africa, Zimbabwe, Russia and Canada. This raises a geopolitical risk if any geopolitical instability or unforeseen event happens in these countries.
As 2025 approaches, addressing the forecasted platinum deficit will become more critical. Exact figures are challenging to predict, but the magnitude of the shortfall can be immense unless there are major changes in the metal’s supply and demand dynamics.
In conclusion, the platinum market is certainly heading for a deficit. Just how big, remains to be seen. Read More
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