“The most material driver is the substitution of palladium by platinum. I think we’re starting to see widespread recognition that it’s happening but it’s still proprietary and confidential. We’re starting to see estimates of anything between one and one-and-a-half-million ounces of substitution, people are saying, by 2025. It’s our view that it’s happening a lot quicker and will be a lot sooner. But that’s quite a material growth. You're looking at another one-million ounces within four years in the platinum market. That’s pretty strong demand,” he said.
“Also, the other thing that’s driving demand is investment.
Daily platinum futures chart with the recent strong advance.
Platinum has been the best performing precious metal so far this year. The metal has been underperforming for years on oversupply and suffering from Volkswagen's emission scandal and the subsequent phasing out of Diesel worldwide —as platinum is used extensively in the catalytic converters on vehicles powered by diesel engines.
A new element for platinum now in the market is U.S.President Joe Biden's "new green wave," considered bullish for platinum, as it is used for hydrogen fuel cells in the drive of heavy- and light-duty vehicles.
The market never waits until the last investor has seen all the details. The time to jump in is now!
A new study by Auctus Metals gives a lot of details regarding PGM's (Platinum Group Metals).
Attachment 2 shows the estimated platinum end-use in 2020 with the automotive sector consuming 30% of supply.
Attachment 3 indicates platinum estimated to be in deficit in 2020 due to COVID-19 and the Anglo American Platinum converter plant outage during the first two quarters of 2020 and additional closure announced in early November 2020 following a series of water leaks.
Attachment 4 displays a 5-year chart on platinum futures with the breakout on the upside in December 2020 at US$ 1'050 per ounce. Platinum is now in a long-term bull market.
A new element for platinum now in the market is U.S.President Joe Biden's "new green wave" is considered bullish for platinum as it is used for hydrogen fuel cells in the drive of heavy- and light-duty vehicles. The market never waits until the last investor has seen all the details.
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