In the section below you find two graphs:
- The medium to long term graph of monthly average Platinum prices in USD during Hong-Kong trading spanning four years from July 2021 till June 2025
- The daily Platinum and Palladium price in USD during Hong-Kong trading (this way I already have a 30 June observation)
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| Monthly average Platinum price in USD on Hong Kong from July 2021 till June 2025 (click to view at true image size) |
Monthly average Platinum prices have been range bound during four years. The average price was below $1000/Oz, with few dips below $900/Oz and no rallies above $1100 /Oz.
In April and May 2021 there has been a brief recovery rally with the Platinum price temporarily exceeding $1200 / Oz. During those months, Palladium rose to its highest price ever. Stock piles had been depleted when the car industry geared up production after the world-wide Covid lock downs.
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| Daily closing price of Platinum and Palladium (Hong Kong trading in USD) (click to view at true image size) |
The gap between the rising Platinum price and the trailing Palladium price is remarkable. Last year in May an article on the end of the Pt-Pd price inversion was published here. Ever since both metals had been hopping over one another, with the gap never getting wide. Parity was last reached early last month.
Gold to Platinum ratio
During the ongoing gold rally, the yellow metal has been breaking above $2000/Oz last year and repeatedly rallying to over $3400 since mid April. Meanwhile Platinum went nowhere, much to the despair of any platinum bulls remaining.
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| Gold to Platinum ratio (GPR) (daily observations over 12 months) |
The current platinum rally only brings the Gold to Platinum ratio (GPR) back to within the range it left in July last year. Back then, gold quoted over $2300/Oz: the break-out above $2000 was confirmed and enduring. The gold rally exceeded expectations, initially leaving pretty much all of the 'white precious metals' behind.
The current GPR of about 2.4 now met with relief, should however not make us overexcited: when going back to early 2021, the GPR was posting at 1.4. When looking back to the nillies, Platinum consistently quoted above the price of Gold, with the GPR hence below 1. For more info, the 2013 article: Platinum group metals: a story of scarcity and Industrial needs includes data since the start of the century.
Mine production and industrial demand
World mine production of Platinum is constant to deceasing slowly. The 2010 mine production stood at 192 metic tonnes. It peaked in 2017 at 199 tonnes and in 2024 stood at 170 tonnes. There have been two volume dips: In 2014 to 147 tonnes and in 2020 to 166 tonnes. With about 75% of world mine production, South Africa is the largest platinum supplier. In 2014 Platinum production took a hit due to a series of wage strikes at Impala Miners, Amplats and Lonmin, the main South African producers. The price dip at the onset of the Covid pandemic contributed to a temporary shutdown of production.
Mine production in the US and Canada has been decreasing over the last five years, since Platinum can no longer profitably be mined in North-America, unless as a by-product.
About 45% of Platinum is consumed in catalytic converters for automobiles. For Palladium that adds up to over 90%. Palladium supply depends heavily on recovery from spent catalytic converters. Reduced use of Platinum in the automotive industry has also impacted the percentage of recovered Platinum relative to mine supply. Jewelry industry takes up a modest percentage of total platinum consumption. Other industrial uses such as catalysers for hydrogen production and fuel cells are trending up.
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