World Platinum Investment Council: Platinum investment remains attractive, shortage will intensify before 2028
Although gold has attracted most of the attention in the market, platinum group metals, especially platinum, have also begun to receive attention. Platinum prices have rebounded to over $1000 per ounce, reaching their highest level in 10 weeks.
Analysts point out that the decline in interest rates, the decrease in real yields, and the weakness of the US dollar are making precious metals an attractive investment opportunity. However, the World Platinum Investment Council (WPIC) points out that there is another powerful driving force behind platinum: the worsening long-term shortage situation.
WPIC Research Director Edward Sterck predicts that it is only a matter of time before the growing deficit in the platinum market begins to affect prices.
The committee expects platinum shortages to increase by 1 million ounces this year, but Sterck believes there will be further shortages.
On Thursday, WPIC released an updated long-term forecast. Between 2025 and 2028, the average platinum supply gap is expected to be around 769000 ounces, a downward correction from the long-term forecast average gap of 546000 ounces in January.
Analysts predict that weak supply growth and strong demand will drive shortages in the next three years. As the shortage increases, analysts predict that above ground inventory will be further depleted.
Analysts said, "The demand for platinum is relatively inelastic and will require the market to use inventory to meet the multi-year market deficit from 2025 to 2028. It is currently unclear how much platinum price is needed to attract some inventory to meet demand and alleviate shortages. In summary, notable factors such as elastic demand, supply side risk, and inventory consumption collectively support the attractiveness of platinum.
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