The World Platinum Investment Council (WPIC) has announced that the global platinum market is expected to experience a significant deficit of 1.0 million troy ounces in 2024, nearly double its previous estimate of 476,000 ounces. This increase is attributed to strong investment demand, particularly from exchange-traded funds (ETFs) and large bar purchases in China.
Investment demand for platinum is projected to rise by 15%, driven by an increase in holdings of physically backed platinum ETFs. Additionally, purchases of platinum bars weighing 500 grams or more in China are anticipated to surge by 40%, reaching 188,000 ounces this year.
Despite relatively low prices for platinum and its sister metals, palladium and rhodium, which have impacted the mining industry, the WPIC forecasts a 2% decline in mine supply due to reduced production in South Africa. This decline will be partially offset by a 2% increase in recycled platinum supply.