These past five years have seen most metals have a brief moment in the sun. But not platinum, which has been wretched. Its day will come – the question is when. I note with some optimism the relative strength the price has displayed in the overall volatility of the past few weeks.
Moreover, last week the World Platinum Investment Council (WPIC) published its Platinum Quarterly (for the fourth quarter of 2022), revising its forecast for 2023, and it is quite promising.
After two years of surpluses, the platinum market is forecast to move to a material deficit in 2023. The swing is considerable. There was a 776,000 ounce surplus in 2022. That will become a 556,000 oz deficit in 2023. That translates to a 24% increase in demand, but just a 3% increase in supply. (Supply was down by 12% in 2022.) So where is the demand going to come from?
The three main sources of demand for platinum around the world are industry (especially the vehicle sector), investment and jewellery. The car market is set to see a 10% increase in demand, says the WPIC, and other industrial demand a 12% increase. Both jewellery and investment-related demand are also forecast to rise.
Platinum is used in the vehicle industry in catalytic converters to oxidise the carbon
