Platinum rose 0.38% to $1,758/oz on June 9, outperforming gold and silver as the supply deficit narrative provided a supportive floor. The metal remains 44% higher year-on-year despite a 17% pullback from its 2026 high of $2,120/oz in February.
The World Platinum Investment Council projects a 297 koz deficit for 2026, marking the fourth consecutive year of structural undersupply. While this is narrower than the record 1.2 million ounce deficit in 2025, it reflects persistent production constraints rather than weakening demand.
South African mine output, which accounts for approximately 70% of global primary platinum supply, remains constrained by aging infrastructure, deep-level mining costs, electricity supply instability from Eskom, and regulatory uncertainty. Russian output faces sanctions-related equipment and logistics challenges.
Industrial platinum demand remains resilient at 2,959 koz in 2026, though this represents a 2% decline from 2025 as the automotive sector gradually pivots toward EVs. The decline is modest and reflects the continued dominance of internal combustion and hybrid vehicles, which still represent over 85% of global vehicle sales.
The structural deficit narrative remains intact despite the narrowed 2026 projection. Platinum is trading at a significant discount to gold ($4,200) and palladium ($2,400 on its own), making it attractive for procurement teams looking to diversify precious metal holdings. The 44% YoY gain signals the market is repricing for scarcity.