Discussion about this post

User's avatar
john.dentice's avatar

Pt as part of the precious metals goup, in particular is very interesting, in part because physical supply is so much more restricted vs. gold and silver to just a handful of companies relying on primarily South Africa as a single (less than pristine) jurisdiction. About 30% of the mines, globally, are producing at a loss at these prices. In addition, from an article written by Trader Ferg on this platform recently, China holds 80% of the above ground inventory. Given that Pt is critrical in the PHEV and ICE automotive industry, and we have seen how scarce resources are now being used in trade negotiations, it's not hard to imagine a perfect storm emerging within the Pt (and PGM) niche. Cheers John

Expand full comment
Alexander Fernandez's avatar

Incredible detail, David — thank you for breaking this down. The persistent deficit and lease rate spike definitely paint a picture of a tightening physical market. One question I had: given the 3:1 gold-to-platinum price ratio vs. the long-run 1:1 average, do you see a structural reversion trade setting up here — or has platinum’s industrial role (vs. gold’s monetary premium) altered the long-term equilibrium?

Expand full comment
11 more comments...

No posts