Platinum, once regarded as the "gold of the wealthy," has undergone a turbulent voyage in the precious metals market. Despite commanding a substantial premium over gold from the 1970s to 2010, platinum has been unable to regain its former luster despite its industrial significance and scarcity.
Platinum Lagged Gold & Silver
Despite reaching new highs in gold and silver, platinum has lagged. The divergence in performance highlights the distinctive obstacles that PGMs encounter as they pursue a stable bottom.
Platinum prices attained an all-time high of $2,308.80 per ounce in 2008. Nevertheless, the metal has been unable to surpass the $2,000 threshold since that time, and it has not traded above $1,500 per ounce since 2014. Platinum has maintained an equilibrium at approximately $1,000 for nearly a decade. This pivotal point was just below platinum prices as of the conclusion of Q2 2024, which indicates a protracted period of stagnation.
The platinum futures market demonstrated some signs of vitality in Q2 2024, with a modest 0.69% increase over the first half of the year and a 10.38% rally. Nevertheless, platinum's recovery was tempered by a 7.33% decline in 2023, suggesting that the path to recovery is still questionable. The October NYMEX platinum futures are trading at the $1000.00 level, indicating a sideways trend.
