I’m going to keep tonight’s submission short, sweet, and to the point.
There’s another white precious metal out there that most investors and speculators ignore but to anyone who pays attention to these markets, this is a stunning chart:
While gold and silver’s move seems impressive, platinum has staged a dramatic comeback, but why all of the sudden is the “other” precious metal suddenly moving so much higher in price?
According to UBS, there is a sudden supply crunch in this precious and strategic metal:
Platinum price target raised at UBS amid tight market conditions
From the article:
UBS raised its platinum price forecast by $150 to $1,350 per ounce across all time periods, citing lower above-ground inventories and market tightness in key locations.
The platinum market reached near-balance in the second quarter following a significant deficit in the first quarter of 2024, according to UBS analysis. Despite this shift toward equilibrium, platinum prices continued to climb as concerns about potential U.S. tariffs on platinum imports persisted.
Market tightness has been particularly pronounced in London and Zurich, two critical platinum trading hubs. This localized supply constraint has contributed to price support despite the overall market moving closer to balance.
The problem? As this article is being completed on a Sunday evening at 10 p.m. Eastern Time, the platinum futures price is $1627.50.
The reality is that the unpredictability of the US tariff regime and lack of domestic US mining leaves American industry susceptible to shortages and price spikes.
The following graphic from Straits Research of platinum producing nations in 2025 highlights the issue with the market when the nations that produce this truly rare precious metal illustrates that South Africa, Russia, and Zimbabwe all produce more of this metal than the United States and Canada combined.
IF, the US and other western nations are going to pursue an inflationary or even stagflationary policy to promote economic growth to attempt to avoid stagnation, this strategic metal has to be considered a realistic portion of anyone’s portfolio along with gold and silver.