Investing in platinum is different from investing in other precious metals. It is primarily an industrial and jewelry commodity rather than an investment asset. It is essential to consider the smaller volume of the market. This applies to both spot trading and futures transactions.
By its properties, this metal somewhat resembles gold. Due to what it is proper for jewelry manufacturing. Also platinoids are used in industry. However, with a few exceptions, their application is limited to the production of catalytic converters. Therefore, the price of platinum is highly dependent on the car market situation.
Diversification is the main purpose of adding such an asset to your portfolio. It is also proper for betting on a weakening dollar.
Month
1 year
3 years
Key Findings
Key information on the platinum price outlook is summarized below:
Price Today
1803.01$
The cost of platinum is largely determined by the supply and demand balance. But market expectations of a recession are making serious adjustments.
The best time to invest in this metal is during periods of economic growth. During such periods, the demand for this metal is growing.
Platinum also plays an important role in hydrogen energy. Therefore, the development of the latter will lead to an increase in quotations.
The expectations for the next 4 weeks are neutral.
Platinum Price for Today
Growth
At the moment, metal quotations are on the rise. It can be an excellent asset for short-term investments and speculative deals. The increase in the price is fuelled by news about the reduction of production in South Africa. The region is the world supply leader. Problems in this region are leading to higher shortages.
Further forecast is positive. The movement of quotations depends on several factors. The key one is the state of the global economy. The situation in China is no less important. This country is the main platinum consumer.
Minimum forecast cost
1633.44 USD
Maximum Forecast Value
1805.38 USD
% value change
0.05%
Platinum Technical Analysis
To make a platinum price forecast, you can use technical analysis tools. To do so, there are such popular methods as:
various oscillators;
trend indicators;
pivot points;
moving averages, etc.
Below is a recommendation to buy/sell this asset. It is based on the data of the most popular technical market analysis tools.
On the weekly time frame chart, the quotes reach the upper line of the Bollinger Bands indicator. RSI and MACD oscillators signal to buy. On the lower time frames there are also buy signals.
It allows experts to promise growth of quotations in the nearest months. There are reasons to believe that the upward trend observed since the beginning of February will continue. Platinum's rating is Strong Buy.
If the uptrend breaks, support levels may come at $928.2, $913.00, $901.10.
Below is a recommendation to buy/sell platinum. It is based on the data of the most popular technical market analysis tools.
Strong buy
0
sell
0
neutral
0
buy
Buy
16.67%
Sell
41.67%
Neutral
41.67%
Buy
Oscillators
Buy
Buy:
16.67%
Sell:
0%
Neutral: 83.33%
Moving Averages
Buy
Buy:
66.67%
Sell:
33.33%
Neutral: 0%
Trend Indicators
Header
Sell
Neutral
Buy
Action
Moving Averages
33.33%
0%
66.67%
Buy
Oscillators
0%
83.33%
16.67%
Buy
Oscillators
Name
Value
Action
RSI(14)
49.63
Neutral
Stochastic %K (14, 3, 3)
72.43
Neutral
Stochastic RSI Fast (3, 3, 14, 14)
72.43
Neutral
Williams Percent Range (14)
-33.59
Buy
CCI(20)
29.14
Neutral
Ultimate Oscillator (7, 14, 28)
50.04
Neutral
Moving Averages
Period
Simple
Exponential
MA10
1761.6
1779.54
MA20
1754.28
1793.1
MA30
1840.55
1802.58
MA50
1888.52
1762.11
MA100
1506.34
1587.96
MA200
1234.65
1369.78
Pivot Points
Pivot
Classic
Fibonacci
Camarilla
Woodie
Demark
Middle
1837.645
1837.645
1837.645
1890.45625
1997.85875
S3
-
255.906
1702.695775
-
-
S2
255.906
860.130298
1847.6885166667
308.71725
-
S1
1196.79
1233.420702
1992.6812583333
1302.4125
1517.2175
R1
2778.529
2441.869298
2282.6667416667
2884.1515
3098.9565
R2
3419.384
2815.159702
2427.6594833333
3472.19525
-
R3
5001.123
3419.384
2572.652225
4465.8905
-
Fundamental analysis
There is a table with prices for the main metals below. It allows you to compare the dynamics of platinum quotations with gold etc.
Experts consider this metal to be an asset proper for the investment portfolio diversification. The long-term price forecast is positive. It is obvious that in 2050 its value will be much higher than the current one. There are several reasons for this:
Increase in demand due to the transition to a "hydrogen economy". The term was coined as a counterbalance to the "hydrocarbon economy". According to eco-activists, hydrogen can completely replace fossil fuels. Platinum is needed to catalyze energy cells. It is believed that this application will replace its use in neutralisers for diesel powered vehicles.
Reduced supply. The main reason is operational challenges at mines in South Africa. This region is the world's main platinum supplier. In addition, this metal reserves are much smaller than those of gold and silver.
Rising investment demand. The correlation of securities has been increasing in recent years. Market participants are expected to see platinum as a way to diversify.
It is argued that the real commodity is a defense against the depreciation of the US dollar. This metal is generally not recommended as a way to save money during periods of high inflation. But its advantage is that it has intrinsic value. Its price cannot fall to zero.
During the next 10 years, experts foresee a long-term increase of the asset's quotations. Given its background, local or medium-term corrections are possible. In particular at the beginning of the decade. But eventually the drawdowns will be redeemed.
The consensus forecast for the value in 2033 is about $2000. That's about 140% higher than the current prices. Thus, this metal is unlikely to help boost capital much. The returns expected are not much higher than the broad stock market. And the risks involved are considerably higher.
On the horizon of 10 years, platinum can be considered only as a diversification tool. Nevertheless, some experts believe in the rapid development of green hydrogen energy. Under their predictions, the value of this metal is severely undervalued.
Platinum price prediction 2030
In the year 2030, analysts promise to see the troy ounce in the range of $1500-$1600. This is only 90 per cent higher than the current level. Moreover, it is noticeably lower than the historical maximums.
There are also more optimistic experts. They call figures of $3500-$4000 per ounce. But such a prediction of platinum prices forecast 2030 looks too optimistic.
It is believed that the cost of this metal is determined by the supply and demand ratio. But the year of 2023 has demonstrated other factors to be stronger. Despite the growing deficit, quotations are not going up. Therefore, a moderate expectations look more likely.
Platinum forecast 2040
The expectations for 2040 are positive. Experts believe that the metal's value will definitely be higher than the current one. The main bullish factors:
inflation, driving all real asset prices upwards;
decline in reserves;
hydrogen energy development.
A separate question is the growth rates of quotations. Most analysts agree upon the fact that they will remain modest. The consensus forecast is 10-15% per year on average, taking into account local drawdowns. They fail to promise multiple appreciation of platinum like gold.
The situation may change radically when new technologies appear. When demand for the metal increases, its value will rise more than expected.
Platinum Future price 2050
Experts give an optimistic outlook for 2050. Most analysts believe that the demand for the metal will grow over the long horizon. They also believe that its scarcity will start to have a serious impact on the market.
When such a thing happens, this metal will prove to be a good long-term investment. But the longer the time horizon, the less reliable are the forecasts of futures prices. Therefore, experts find it difficult to give exact figures.
Analysts note that since 2015, the cost has been moving within a narrow range. It is less volatile than gold quotations. Therefore, this investment instrument is recommended for diversification and hedging.
About Platinum
Platinum is the third most popular precious metal. But investing in this asset has a number of peculiarities that need to be taken into account:
It is an industrial jewelry commodity. It has low investment demand. Bullion bars and coins account for only 10-15% of production.
The asset is less liquid than gold and silver due to lower investor interest.
The main reserves are in South Africa. The level of production is highly dependent on the situation in this region.
More than 40% of mined is used to produce catalytic converters for diesel powered vehicles. The strengthening position of eco-activists has a twofold impact on the consumption of this metal.
On the one hand, electric cars are replacing diesel. On the other hand, the hydrogen economy cannot do without platinum. Therefore, the demand for the metal in the future will depend on the future course of green energy development.
The jewelry industry is the second largest consumer. It accounts for more than a third of the mined volume. China plays the leading role. Global consumption depends, among other things, on the popularity of platinum jewelry.
These factors have a stronger influence on quotations than stock exchange speculation. But one should remember that metal is a good diversification option. It can be used to hedge the risks of investing in other metals. It has a negative correlation with gold (insignificant) and palladium (quite noticeable).
Platinum began to be used as an investment asset only in the second half of the XX century. Nowadays, one can invest in it in a large number of ways. For example, through:
purchasing physical metal in the form of bars and coins;
purchasing stocks of ETFs with net assets consisting of bullion;
opening a metal account;
investing in stocks of companies involved in mining;
using complex instruments, such as speculation in futures or trading cdfs.
Platinum Price History Chart
Key dates
Year 2008
In February 2008, the cost of platinum reached an all-time high of $2150. This year was characterized by a shortage of physical metal. At the same time, there was high market volatility. As a result of the crisis, the price more than halved by September 2008 (to $1000).
Year 2011
In April 2011, the cost of a troy ounce of platinum reached $1875. This is the maximum shown by quotations after 2008. Since then, the metal price has been in a pronounced downtrend, which lasted until 2015.
Year 2015
The bearish cycle in the platinum market has come to an end. Quotes have moved into a prolonged sideways trend. The price of an ounce as of December 2015 practically remained the same as in November 2023.
What Influences Platinum Price
State of economy
It is primarily an industrial and jewelry metal. When the market expects a recession and lower production, the value falls. Demand from the jewelry industry is also unstable. Platinum is now cheaper than gold, and items made of it are not considered elite.
Supply and demand ratio
When production fails to cover consumption, there is a threat of shortages. Amid fears of a shortage of physical metal, the price rises. But when this is accompanied by expectations of a recession, there is little or no impact on quotations. This was clearly seen in 2008 and 2023.
The problems in South Africa have a direct impact on mining. It can be argued that the price of the metal depends on the well-being of this region. But this only happens when the global economic situation is stable.
Technical achievements
Advances in technology are creating new applications for this metal. As a result, its value is increasing. Hence, quotations are also rising. For example, hydrogen energy is one of the newest applications.
"Green" policy
As emissions regulations have become stricter, the need for platinum neutralisers has grown. But the growing popularity of electric vehicles is jeopardizing the popularity of this metal.
Market situation
The cost rises when palladium, gold and oil prices drop. This is due to the fact that platinum consumption by industry increases during such periods.
Is Platinum A Good Investment
Short-term
(1-6 month)
The prediction for next week is negative. A bearish rally continues in the market of this metal. Between April and November 2023, it lost almost a quarter of its value. But quotations are still seeking to update the local minimum. The reason is the persistence of negative expectations about recession. Production cuts will lead to a global surplus of metal supply on the market.
Medium-term
(6-12 month)
The current situation in the economy is putting pressure on quotations. Experts no longer predict its change in the near future. There is a probability that the price of metal will decrease on the horizon of 6-12 months. Based on technical analysis, it is also possible to give investment advice to sell.
Long-term
(1 year+)
The prediction for 2024 and beyond is negative. Experts believe the boom in the market of this metal ended in 2011. There is no reason to expect its resumption. The economic situation is unlikely to favor this. Also, many investors fear the demand will decrease. This means that they are reluctant to make long-term investments in this asset.
FAQ
Where is the platinum price heading?
In the second half of 2023, quotations have been declining. Small regional rises failed to bring the price back to the $1,000 mark. But experts predict a reversal of the trend.
Is platinum a good investment for the future?
Since 2015, quotations of this metal have been in a sidewall. It brings no profit to long-term investors. But experts believe that asset is now undervalued. The current moment is proper for long-term investments.
Why is platinum going down in value?
This most often happens during economic crises. The value also falls when production exceeds the demand level.
Will platinum ever be worth more than gold?
Such a period has already taken place in the past. But it is not likely to happen again. There are no fundamental factors for such a return. It may happen when production levels fall sharply.
What is the best precious metal to buy right now?
For the precious metals market beginners, experts recommend investing in gold. Platinum is proper for those who have positions in other alternative assets. It is used primarily for diversification purposes.
How much will platinum be worth in 2030?
Analysts now promise more modest figures than a few years ago. The average forecast for 2030 is at the level of $1500-$1600. But more optimistic predictions can also be found.
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