Move over %Gold. Investors are now piling into %Platinum amid continued macroeconomic and trade uncertainty.
So far this year, platinum prices have risen 15%, outpacing gold, which has stalled after hitting an all-time high above $3,500 U.S. per ounce in April.
Platinum’s return has rarely surpassed gold. Analysts say the current outperformance is due to investors seeking other stores of value as concerns persist over trade and tariffs.
The rise in platinum’s price is a positive development for leading miners of the metal, such as Anglo American (LON: AAL), %IvanhoeMines (TSX: $IVN), and %BravoMining (TSXV: $BRVO).
Precious metals such as platinum and gold are considered safe investments in times of economic stress and geopolitical uncertainty.
Platinum may also be benefitting from China, which is the largest platinum market globally.
In this year’s first quarter, platinum jewelry demand grew by 50% year-over-year in China, according to data from the World Platinum Investment Council.
That growth in China is double the typical platinum demand and has been attributed to gold becoming too expensive for many consumers to buy.
With gold prices near record highs, Chinese consumers are beginning to look more favourably on platinum, say analysts.
Supply is yet another contributor to high platinum prices as mined output of platinum from South Africa decreased by 12% in this year’s first quarter from a year earlier, helping to lift prices.
Despite platinum’s current strength, gold remains roughly 2% from making a new record high while uncertainty about the U.S. economy and trade policies remains extremely high.
