Platinum prices forecast: set to explode as supply deficit widens

November 21, 2023 08:02 PM PST | By Invezz
Follow us on Google News:

Platinum prices continued rising this week after a report pointed to low production this year. It recovered to a high of $940 on Wednesday, higher than the year-to-date low of $837. It remains 17.45% below the highest point this year.

Platinum waning supply

The most recent report by the World Platinum Investment Council showed that supply will likely be under pressure in the near term. Total mining supply dropped by 4% in the third quarter from the previous quarter. Total mining supply came in at 1,418 koz as a drop in North America, Russia, and other was offset by an increase from Zimbabwe and South Africa.

At the same time, recycling supply also dropped in Q3. It dropped to 1,822 koz, down by 2% from the same quarter in 2022 and 3% from Q2. Therefore, the report estimates that platinum deficit will increase by 66 koz to 1,071 koz. This deficit will happen because of a supply shortfall of 13% as countries are expected to produce 7,079 koz. 

Further, platinum demand is expected to remain at an elevated level. The council expects that supply will jump by 26% to 8,150 koz. Most of this demand will come from the automotive and industrial demand. 

There are signs that combustion engine vehicle demand is rising still continuing even as many people continue buying electric vehicles. On Tuesday, Ford said that it would delay its $3.5 billion battery investment as demand waned. 

Most importantly, the council believes that the world will it a record supply deficit in 2024. It sees the deficit widening to 353 koz in 2024, which could be a positive thing for its prices. The report added that:

“Platinum supply is expected to increase by 3% to 7,310 koz in 2024, although remaining constrained. Mining supply growth of 2% is forecast but remains challenged as electricity shortages remain a risk. Furthermore, miners are publicly discussing the need to restructure.”

Platinum prices forecast

Platinum chart by TradingView

On the daily chart shows that platinum prices have bounced back in the past few days. The price has jumped from a low of $839.34 to a high of $940. It is now hovering near the highest point since September 19th. It has risen above the 50-day and 100-day Exponential Moving Averages (EMA).

The price has moved above the higher side of the descending channel, which is shown in black. Therefore, the outlook for platinum is extremely bullish as the supply deficit continues rising. If this happens, the next point to watch will be at $988.72, the highest point on July 18th.

The post Platinum prices forecast: set to explode as supply deficit widens appeared first on Invezz


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies