After platinum surged to $1,300, it experienced a high-level correction. It has risen by 40% this year, still placing emphasis on its industrial attributes.

Amid the surge in gold prices, platinum has finally broken its three-year silence, rising by 40% since the beginning of the year. However, after hitting the $1,300 mark today, platinum prices have corrected from their highs. Compared to gold, platinum remains a precious metal with stronger industrial attributes. Institutional analysis suggests that the core logic of the platinum market still focuses on its performance in the automotive chain and industrial demand.

Today, spot platinum prices briefly reached a four-year high but subsequently oscillated and corrected. As of 17:30 Beijing time, spot platinum prices fell 1.62% intraday to $1,275 per ounce. COMEX gold prices, on the other hand, broke through previous highs, reclaiming the $3,400 mark.

Compared to gold, a more well-known precious metal in the market, platinum is rarer in quantity. Annual supply and demand for platinum are roughly in the range of over 200 mt, while for gold, it is over 4,000 mt per year.

Data released by the World Platinum Investment Council (WPIC) show that in Q1 2025, global total platinum supply decreased by 10% YoY to 45.3 mt, while demand increased by 10% YoY to 70.7 mt. On the demand side, global platinum jewelry and investment demand grew significantly, with jewelry demand increasing by 9% YoY.

Although both are precious metals, it is not uncommon for platinum and gold prices to diverge. In the past three years, platinum prices have mainly fluctuated within the range of $850-1,150 per ounce. Against the backdrop of a 27% increase in international gold prices last year, platinum prices instead fell by about 9%.

According to research by Galaxy Futures, platinum's historical price movements were once highly correlated with those of gold, and it was also enthusiastically pursued by market investors. However, starting around 2015, with the gradual rise of new energy vehicles (NEVs), the market's outlook for platinum demand became pessimistic (platinum is mainly used as a catalyst for purifying exhaust emissions from gasoline vehicles in industry). Since then, platinum and gold price movements have gradually diverged, becoming dominated by industrial attributes, and evolving into a situation of weak supply and demand.

Regarding the sudden surge in platinum prices this year, industry insiders believe it is mainly driven by the surge in gold prices in the short term. Due to factors such as frequent geopolitical events, weakening US dollar credibility, and global central bank gold purchases, gold prices have risen astonishingly in the past two years. After accumulating a certain level of gains, platinum prices appeared undervalued compared to gold, and investment value finally emerged.

Additionally, with the rise of green energy, platinum has found application value in the hydrogen economy. Galaxy Futures believes that although the current share is still small, there are imaginable application prospects and market space. Coupled with rigid supply constraints due to cost issues and a downward trend in above-ground inventory, market sentiment towards platinum investment has recovered.

Industrial Securities Research analyzed that the mineral supply of platinum is highly concentrated, primarily dominated by South Africa and Russia. Geopolitical risks, energy crises, mine restructuring, and other factors have led to uncertainties and structural bottlenecks in the global platinum supply.

The World Platinum Investment Council (WPIC) forecasts that the total global platinum supply in 2025 will be the lowest in five years, declining by 4% to 217.7 mt, while the total global platinum demand in 2025 is expected to reach 247.7 mt.

However, as a precious metal with stronger industrial attributes, some studies suggest that due to the uncertain demand outlook, there are doubts about whether platinum prices can continue to rise. On June 12, Goldman Sachs pointed out in its latest research that speculative and ETF demand-driven factors have been the main forces propelling platinum towards $1,280/oz, rather than fundamental improvements. Once speculative enthusiasm fades, a price correction will be inevitable.

Industrial Securities Research believes that the demand for platinum in hydrogen applications has significant growth elasticity, and the industrial demand for platinum will maintain a stable growth pattern, but the incremental space may become limited as traditional industries slow down. The price trend of platinum is highly dependent on automotive demand rather than being driven by investment attributes. The core of future market logic will still focus on its performance in the automotive chain and industrial demand.