(Mike Maharrey, Money Metals News Service) Platinum corrected last month, along with other precious metals. According to the World Platinum Investment Council (WPIC), after getting caught up in precious metals mania, the recent price drop brought the metal more in line with fundamental market dynamics.
Platinum joined gold and silver for the wild ride up in 2025, gaining 119 percent, and then continuing to surge through the first three weeks of 2026. Platinum hit an all-time high of $2,923 an ounce in late January before selling off along with gold and silver.
Over the last few weeks, platinum has rallied and seems to have found support around $2,000.
While the selloff was substantial, the platinum price is still up 112 percent since January 2024.
World Platinum Investment Council analysts say that despite the recent correction, “the factors underpinning platinum’s all-time price high remain entrenched.”
“The price increase has not solved for the ongoing shortage of metal, which is illustrated by sustained high lease rates and strong OTC backwardation.”
Based on the World Platinum Investment Council’s Platinum Price Attribution Model (PPAM), the price became significantly disconnected from market fundamentals in late December and early January. WPIC analysts say this was likely due to the platinum market being caught up in broader precious metal bullishness, driven by the “significant impact that the macro-economic and geopolitical environment was having on commodity markets.”
“Platinum’s early price momentum increasingly began to disconnect from the expected price derived from our PPAM. The residual factor (i.e. unexplained price drivers) between spot and our PPAM exceeded US$500/oz by 26 January 2026, when platinum achieved an all-time high of US$2,923/oz.”
Analysts say the recent correction and consolidation brought the market more in line with traditional drivers.
“In our view, platinum’s mild price recovery in February 2026 likely reflects some consolidation with investors returning their focus to tangible market dynamics such as platinum’s elevated lease rates and compelling supply-demand outlook.”
Not Enough Platinum
Much like silver, the platinum market faces a structural deficit with demand outstripping mining and recycling supply.
In 2024, the platinum market ran its third straight supply deficit with a 995,000-ounce shortfall. While the final numbers aren’t in, the WPIC projects a slightly larger deficit in 2025, with the market forecast to roughly balance this year. Looking ahead, the WPIC projects modest market deficits in the 300-400k range through 2030.
The WPIC identifies five factors that should continue to support the platinum price in the near to mid-term.
- Ongoing supply shortfalls – As already noted, despite roughly balancing in 2026, the platinum market is expected to return to modest deficits in 2027 and beyond. According to the WPIC, the balanced market this year is not expected to alleviate current market tightness.
- Supply issues have more than one driver – Both primary mining and secondary recycling supply pose challenges.
- Tariff issues – U.S. tariffs present some downside risks to demand. These will likely be offset by tailwinds to jewelry demand and Chinese investment demand.
- Elevated lease rates and OTC London backwardation – These dynamics highlight tight market conditions.
- The platinum price remains significantly below the price of gold – Before 2011, platinum was generally more expensive than gold. In 2015, this historical trend reversed, with the spread between gold and platinum growing wider.
It remains to be seen whether platinum will regain the price parity with gold we saw before the mid-2010s, but given the supply and demand dynamics, it is reasonable to be bullish on platinum in the near to mid-term.
Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
