Platinum Prices Soar to Highest Level Since 2014
Amid ongoing uncertainty surrounding U.S. tariff policies, gold prices have been soaring, and recently, the prices of other precious metals such as silver and platinum have also shown notable strength. In particular, platinum prices have surged to their highest levels in about 11 years.
Due to increased demand for safe-haven assets resulting from U.S. President Donald Trump's tariff policies, both gold and silver prices have soared. As a representative safe-haven asset, gold prices have risen by approximately 29% so far this year. Silver prices have also reached their highest level in 13 years since 2012, and more than 300 tons of silver have flowed into silver exchange-traded funds (ETFs) this month alone, already surpassing last month's inflow of 150 tons.
Platinum prices are also at their highest since 2014, marking an 11-year peak. According to Bloomberg News on the 19th (local time), the spot price of platinum at one point rose more than 2% to $1,350.17 per ounce, reaching the highest level since September 2014. The spot price of platinum has surged by over 40% so far this year, and platinum ETFs have seen an inflow of 70,000 ounces since the beginning of the year.
The Financial Times (FT) reported, "Since the inauguration of U.S. President Donald Trump, the status of the U.S. dollar as a safe-haven asset has been shaken, leading to a historic rally in gold prices." However, it also explained, "Amid concerns about overvaluation of gold, the prices of other precious metals, which serve as 'gold alternatives,' are rising." Nicky Shiels, an analyst at gold refiner MKS PAMP, said, "Gold is the preferred hedge against the dollar, and the next round of such (hedging) trades is underway," adding, "With gold prices nearly doubling in two years, there is a sentiment of searching for the 'next player.'"
Unlike gold, both silver and platinum have clear industrial uses, and there are interpretations suggesting that demand will outpace supply this year. Internal combustion engine and hybrid vehicles use platinum in pollution control devices, so the slowdown in the transition to electric vehicles is also cited as a factor driving increased platinum demand. Bloomberg reported that strong demand from China and heightened investor interest are expected to lead platinum prices to a record quarterly surge. In contrast, U.S. investment bank Goldman Sachs forecast that platinum prices could fall to a range of $800 to $1,150 per ounce.
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