Can platinum's price surge continue? World Platinum Investment Council gives forecast
(Kitco News) - Many of the factors that have held back platinum in the past, including demand, liquidity in the futures markets, and visibility, are now becoming tailwinds for the price, said Trevor Raymond, director of research at the World Platinum Investment Council.
Platinum has risen 13% since the start of 2021.
“What we’ve seen over this period is just more visibility for platinum and I think what’s going on is really about demand growth, constraints in supply, and more visibility,” Raymond said. “What has happened during COVID is that the world has become more aware that the hydrogen economy is probably a certainty.”
On a relative basis to gold, platinum has historically traded at a premium, but the fact that it is trading at a discount to gold right now suggests that the price is still undervalued at these levels, Raymond said.