- The WPIC report anticipates a platinum deficit of 983,000 ounces in 2023, a 77% hike from its previous forecast.
- Industrial demand, particularly from the chemical and glass sector in China, as well as platinum's use in the auto industry, are driving record-breaking demand.
- Despite economic challenges, the core drivers of platinum's projected 28% demand growth appear resilient, according to WPIC CEO Trevor Raymond.
Well, folks, it seems like our platinum party has just started! As per the latest WPIC report, we're looking at a platinum shortfall of a whopping 983,000 ounces this year. Yeah, that's right, a 77% jump from their previous forecast in March. Surprised? So are we!
So, what's causing this metal mayhem? Turns out, our pals in the industrial sector, especially those dabbling in chemicals and glass manufacturing over in China, are creating a demand tsunami. Auto industry too, is riding the wave, replacing the pricey palladium with platinum in catalytic converters. Fun times, eh?
And where does that put the price of platinum, you ask? Well, our shiny friend was going for about $1,070 per troy ounce just the other Monday, peaking at a multi-year high of $1,130 in April. Not too shabby, right?
Guess what else? The first quarter of 2023 saw a serious love affair between investors and platinum. We're talking a 71% surge in bar and coin investments compared to last year. Yup, 102,000 ounces of platinum found new homes, marking the biggest adoption since the third quarter of 2021. Seems like the Japanese are back in the platinum game, adding a nice little boost to the demand.
Now, the global economic climate isn't exactly all rainbows and sunshine. Inflation, energy crisis, and general uncertainty are adding to the drama. But Trevor Raymond, the big shot CEO of WPIC, is still feeling the platinum vibe. He's betting on areas like the auto industry's ongoing palladium-to-platinum switch and China's committed glass and chemical production capacity, along with investor demand. So, is platinum going to lose its shine? Looks like the odds are in our favor, folks!
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