Page 22 - Bullion World Volume 4 Issue 7 January 2024

Bullion World | Volume 4 | Issue 7 | July 2024

Platinum: An Underappreciated Metal

Ms Soni Kumari, Commodity Strategist, ANZ Research

Compared to gold and silver, platinum has
underperformed this year. Its price has been trading
nearly 40% lower than at its peak in 2011. While rising
gold prices have made platinum more attractive to
some investors, that positive sentiment is missing from
longer-term views of the price as evident in the forward
curves.

Falling platinum lease rates (Libor-Platinum swap rate)
imply an easing in supply tightness, despite being
undersupplied for the second consecutive year. The
weakness in platinum’s forward curve is linked to the
fact that above-ground inventories are falling but still
high. While these will suppress the price in the short
term, the widening supply shortfall will turn market
sentiment in the medium term, in our view.

Platinum price touched a record low relative to gold

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