Platinum Prices Are On Track For A 20 Per Cent Quarterly Gain, The Biggest Since 2008

Platinum prices have surged more than 20 percent in the past three months amid persistent supply concerns, and the precious metal is now set for its best quarter since early 2009.

On Friday, platinum rose another 1.0% to $1,064.50 an ounce, for a quarterly gain of just under 23%.

If platinum maintains its 20 per cent rise, it will be the biggest quarterly gain since the first quarter of 2008, when prices rose a staggering 34 per cent.

According to the World Platinum Investment Council, China, the largest consumer of the metal, has imported an excess of platinum since 2019, which has left limited ground supply for the rest of the world.

"This, coupled with the higher prices that may be required for China to release inventories into the domestic market, could have a significant impact on platinum market price discovery," the association wrote in its platinum Perspectives report in December.

The association predicts a platinum shortage in 2023, with demand rising 19 per cent and supply only 2 per cent.

"Despite international economic turmoil, with many countries already in or expected to fall into recession, industrial demand for platinum is set to grow 10 percent compared to 2022, more than the 10-year average," WPIC said in a press release.

Demand for platinum from the automotive sector will also continue to grow next year, while jewelry-based platinum demand is expected to remain unchanged throughout 2023, WPIC added.

Platinum is by far the best performing precious metal in 2022, up 9 percent so far this year, according to Reuters data. Over the same period, gold is down about 1 percent, silver is up about 3 percent and palladium is down 4 percent.