Why invest in platinum?
Platinum’s attraction as an investment asset arises from the following:
- Platinum supply has fallen short of demand every year since 2023 and this is expected to continue to be the case through 2030
- A substantial annual surplus would be required to rebuild above ground stocks to sustainable levels and alleviate ongoing market tightness
- Platinum supply is challenged, with limited scope to increase mine supply in the short-to-medium term. Higher prices are supportive of recycling supply growth, but so far this year the rate of growth has fallen short of expectations
- Diversity of end uses and a lack of lower-priced alternatives are supportive of platinum demand despite downside risks from external events (Iran War) or structural trends (vehicle electrification)
- The platinum price remains significantly below the price of gold
How to invest in Platinum
Rare and with unique properties, platinum is in demand as both an industrial and precious metal. There are many reasons to consider platinum as an investment.
A long-term store of value
Rarer than gold, platinum is recognised globally as an enduring symbol of quality and value.
A portfolio diversifier
Depending on individual investment goals, platinum can help provide diversification given its combination of precious and industrial attributes.
Accessible
A wide range of options exists for both private and professional investors, and low minimum investment levels are possible.
Supply/Demand balance
The platinum market is currently in deficit due to strong demand drivers, including the growing hydrogen economy, and constrained supply.
Currency Hedge
In certain circumstances, an investment in platinum can help protect against fluctuating exchange rates.