Page 22 - Bullion World Volume 4 Issue 7 January 2024
P. 22

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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