Unit | Value |
---|---|
Price Per Gram | $32.01 |
Per Oz | $995.64 |
Price Per Kilo | $32009.83 |
Platinum's role in the global economy is more nuanced than other precious metals and is heavily tied to industrial applications. As a result, platinum prices are influenced by a variety of complex factors that go beyond traditional market drivers like supply and demand.
The supply of platinum is highly concentrated to South Africa and Russia, which combined, control 80% of the global platinum market. This geographical concentration makes platinum supply particularly vulnerable to local disruptions such as mining strikes, political instability, and regulatory changes in these countries. The emergence of the BRICS economic block as a major trading group make impact prices in the west in the coming years and any significant disruption in these regions can lead to sharp spikes in platinum prices.
Platinum's demand is driven by a combination of industrial, investment, and jewelry markets with the automotive industry being the largest consumer for catalytic converters. As environmental regulations become stricter worldwide, the demand for platinum in this application is likely to increase, especially in regions where diesel engines are more commons, as they require more platinum than gasoline engines. However, as the global automotive industry shifts toward EVs, the demand for platinum in catalytic converters may decline
Platinum is also valued as an investment asset that investors often turn to as a hedge against economic uncertainty. During periods of economic recession or geopolitical tension, demand for platinum as a safe-haven asset may increase, driving up prices.