Platinum: Poised For A Comeback
Platinum's diverse industrial uses, especially in automotive and industrial sectors, support resilient demand. Chinese investment demand for platinum is surging. Market deficits and depleting inventories suggest inevitable price increases, barring a severe economic recession, with potential long-term gains from hydrogen economy applications.
PPLT: 2025 Could Be The Year Platinum Finally Shines
The abrdn Physical Platinum Shares ETF saw a 12% increase in ounces under management in 2024, yet the metal failed to join in the precious metal rally. Weakness in auto demand amid the shift to electric vehicles, together with falling Chinese jewelry demand, largely explain the weakness. With the metal now trading below the cost of extraction for many large miners, we are likely to see a sustainable floor in prices.
Platinum's Supply Deficit Continues, Is Now The Time To Invest?
Platinum's current supply deficit is substantial and growing on it's 3rd consecutive year with net negative movement in above-ground physical platinum supplies. While Platinum behaves like an industrial metal more than a precious metal, even compared to other industrial metals it remains undervalued. With Limited downside risk with significant upside potential, platinum's relative undervaluation compared to other metals makes it a speculative buy and an excellent place to park cash.
Platinum Is Unbelievably Cheap, Overdue For Rebound: Buy PPLT (Rating Upgrade)
The smartest way to play platinum in your brokerage account is through ownership of the abrdn Physical Platinum Shares ETF. Historically, platinum has been priced higher than gold due to its scarcity, both serving as strong monetary and wealth hedges over the centuries. Despite recent underperformance, platinum could easily rise +50% to +100% over the next 2-3 years if supply shortfalls continue.
