Platinum prices have neared their highest level in six years, driven by concerns about inflation and a sweeping rally in financial markets that has powered assets from stocks to oil and bitcoin higher.
Most actively traded platinum futures have risen about 17% in 2021 to $1,259 a troy ounce, outpacing most other precious metals. Since their nadir in March last year, platinum prices have more than doubled.
Money managers have started pouring funds into platinum, in part because the metal is seen as a store of value at a time when investors expect government spending to lift inflation. Precious metals are often viewed as a hedge against rising consumer prices. After a run-up in the price of gold last year, some investors have turned to platinum as a cheaper alternative.
“It’s a well-kicked dog that’s getting up,” said R. Michael Jones, chief executive of Platinum Group Metals Ltd., which is developing a palladium, rhodium and platinum mine in South Africa.
Platinum’s comeback initially kicked off with a rebound in industrial consumption of precious metals. It has now been caught up in a broader surge across asset classes, powered by investors who are piling into rising markets in the expectation of further gains.
