FX.co ★ Platinum Hits Decade High on Supply Crunch and Surging Demand

Platinum prices have soared past $1,330 per ounce, reaching a decade-high and marking an impressive increase of over 45% this year. This upward trend is largely attributed to a noteworthy supply shortage, a rise in jewelry restocking, and bolstered investor confidence following the London Platinum Week. Further fueling this trend, the gold/platinum ratio has decreased to its lowest in more than three years, highlighting renewed interest in platinum as a relatively undervalued alternative to gold. The escalating tensions in the Middle East have also spurred safe-haven buying, indirectly boosting platinum along with other precious metals. Additionally, heightened demand from Asian markets, particularly China and India, has bolstered physical consumption, driven by both industrial needs and the luxury sector. On the industrial side, platinum remains vital for automotive catalytic converters and the hydrogen economy, with advancements in fuel cell technologies tightening the global supply even further.