Priyanka Tiwari
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Suspense crime, Digital Desk : While gold and silver have enjoyed solid gains this year, another precious metal has quietly stolen the spotlight with a spectacular performance. Platinum has surged by nearly 49% in 2024, hitting a decade-high and dramatically outshining its more famous counterparts.
This explosive rally has propelled platinum's price to levels not seen in ten years, recently touching $1,348 per ounce. For perspective, gold has risen by a respectable 11% and silver by 21% during the same period. So, what is fuelling this incredible bull run? The answer lies in a perfect storm of tightening supply and surging demand.
1. A Deepening Supply Crisis
The world is facing a significant platinum shortage. Major producers, particularly in South Africa, are grappling with crippling operational challenges, including persistent power shortages, rising costs, and labor issues. Compounding the problem are international sanctions on Russia, another key supplier, which are further squeezing global availability. The World Platinum Investment Council (WPIC) has forecast a substantial supply deficit for the year, a fundamental driver pushing prices higher.
2. A Boom in Industrial and Green Demand
Unlike gold, platinum has a crucial dual role as both an investment asset and an essential industrial metal. This industrial demand is firing on all cylinders:
Automotive Sector: Stricter global emissions standards are forcing car manufacturers to use more platinum in catalytic converters to clean exhaust fumes.
The Green Revolution: Platinum is a vital catalyst for producing green hydrogen through electrolysis. As the world pivots toward clean energy, the long-term demand for platinum in the burgeoning hydrogen economy is set to soar.
The Investment Outlook
For years, platinum has traded at a significant discount to gold. This powerful rally is rapidly closing that gap. With a deepening supply deficit and a robust, future-proof demand profile, many analysts believe platinum’s run is far from over. Its unique position as a metal critical to both traditional industry and the green energy transition makes it one of the most compelling stories in the commodity market today.
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