A great time to buy Platinum?
Platinum is approaching its best time of the year as the metal tends to gain from mid-Decemebr over the first couple of months of the following year. Is this potentially a good time to go long?
Demand outstrips supply
There is a basic skew to the market where demand for Platinum is out stripping demand.
The chart below shows the annual supply changes from 2019 -2020. The left hand side is the 2019 supply level. The right hand side is the 2020 forecast supply.
And now for the demand side.
The right hand blue bar shows the demand for 2019 and the right blue bar shows the demand forecast for 2020. Now notice a deficit of -1,202 koz compared to an estimate of just -336 koz.
Then take a look into the future and you can see that demand is expected to rise in 2021 to 8089 koz - look at the chart below and the right hand side-
And the supply side for 2021? Well it is still below demand -
So platinum is a market where demand is expected to outstrip supply. There is a strategic role for platinum in the growth of the hydrogen economy too, so demand could expand. There is lots more to be said, but you can access some of the latest research from the World Platinum Investment Council here. Read pages 1-6 for a decent summary and page 4 for the investment case in a nutshell.
