Why is platinum price so low?

As 2021 progressed, the platinum price steadily slipped lower as mined supply increased some 19 percent year-over-year and demand retracted 5 percent. 2021 platinum price performance.

Why is platinum dropping value?

The council said platinum supply should fall 1% in 2022 as a backlog of semi-processed material in South Africa runs out. It said it expected demand, which dropped last year as a sharp fall in purchases by investors more than offset higher consumption by industry and jewellers, to rise by 7% in 2022.

Is platinum a good investment 2021?

Platinum prices have risen less dramatically to around $1,170 an ounce. The WPIC said the roughly 8 million ounce a year market was oversupplied by 1.23 million ounces in 2021 and predicted a surplus of 652,000 ounces in 2022. It said supply of platinum rose by 21% last year, while demand fell 9%.

Is platinum a good buy right now?

Chances are very good that in calendar year 2022 or beyond, the trading price of platinum is going to bounce strongly back, because the demand for the metal is not going to go away. Even though there is a surplus available now that is depressing prices, that is likely to change.

Does platinum have a future?

After dropping by 43,000 ounces in 2021, investment demand is expected to grow by 329,000 ounces in 2022. According to the WPIC, the platinum market surplus will be 652,000 ounces this year, down from 1.232 million ounces last year.

Should We Be Buying Platinum In 2022? | Why Is Platinum SO Cheap Compared To Gold?

Is it better to invest in gold or platinum?

Some investors may want to prioritize stability and long-term investing. In that case, gold is likely the better option. The precious metal has a longstanding history of reliable demand which often spikes during economic downturns. On the other hand, platinum usually performs better during times of economic growth.

Is platinum undervalued?

Having said that, the price of platinum can be volatile, especially when measured over a shorter period of time, and many market commentators suggest that platinum is currently undervalued.

What will platinum be worth in 2030?

Finally, the site's platinum price prediction for 2030 is an optimistic $3,325 by year-end. Last but not least, Wallet Investor has a more bullish sentiment, with a platinum forecast which says it will be worth $1,162 in a year and $1,490 in five years.

Is platinum hard to sell?

This is because platinum provides a sturdy grip for diamonds and gemstones to keep them in place. Unfortunately, when the jewellery is still embedded with stones, it cannot be easily sold. The stones need to be removed to sell the platinum as a scrap precious metal first.

Is platinum rarer than gold?

For starters, gold is far more abundant in the earth's crust, making platinum rarer. Whilst 1,500 tons of gold are mined annually, only 160 tons of platinum are extracted. Platinum is also denser than gold, thus heavier.

Will platinum go up 2022?

The bank's platinum price prediction is bullish for the long-term, rising from $1,100 an ounce at the end of March to $1,300 by the end of 2022 and $1,375 by the end of September 2023.

What will platinum be worth in 10 years?

Platinum price stood at $908.20 per troy ounce

According to the latest long-term forecast, Platinum price will hit $1,000 by the end of 2022 and then $1,500 by the end of 2026. Platinum will rise to $2,000 within the year of 2029 and $2,500 in 2031.

Is there a demand for platinum?

The WPIC said that the platinum market saw a supply surplus of 1.232 million ounces last year, driven by the rapid process of stockpiled ore from 2020 and significant outflows of 237,000 ounces from platinum-backed exchange-traded funds. The increase in supply came as platinum demand saw broad-based growth in 2021.

Why is platinum so rare?

In general, this rare metal is found in deposits of small grains, dust, or small nuggets that averages from 50 to 75% in purity. Small amounts of platinum are obtained by mining other products. However, this metal is normally found in ores that are mixed with other metals like palladium and gold.

Can you pawn platinum?

Can platinum be pawned? Yes, you can pawn platinum just like you can pawn any other thing of value. That said, if you would like to pawn your platinum it's important to find a reputable, local pawn shop that will give you a fair price for your metal.

Is platinum a money?

Platinum has never practically served as money (except for a short period in Russia, where platinum coins were used as a regular national currency), but it is used an investment. Because it is a precious metal, platinum often trades directionally with gold.

What is the highest price platinum has ever been?

What is the highest price platinum has ever been? The all-time high platinum price was about $2,270 per troy ounce. It was reached in March of 2008.

Why is platinum not as popular as gold?

Experts posit that platinum is about 15–20 times scarcer than gold, on the basis of annual mine production. Since 2014, platinum rates have fallen significantly lower than gold rates. More than 75% of global platinum is mined in South Africa.

Why does platinum cost less than gold?

Gold: According to The Diamond Pro, a white gold ring will cost roughly 40-50% less than a platinum engagement ring. This price discrepancy is largely because platinum is denser, so more material is required to craft a ring making white gold the more budget-friendly option for shoppers.

Is diamond better than platinum?

The award levels are Silver (20,000+), Double Silver (40,000+), Gold (75,000+), Double Gold (150,000+), Diamond (200,000+), Platinum (400,000+) and Double Platinum (800,000+).

Will platinum price increase in future?

Investors may consider platinum over gold. If gold rally continues without a breather in 2021 again, platinum prices may shore up. Mine production is likely to return to normal in 2021 but still may be below the average annual supply from 2015 to 2019, according to WPIC.

Is there a platinum shortage?

Residual pandemic effects, such as the semiconductor shortages, will continue to inhibit platinum demand in 2021 and 2022, both of which would otherwise be far higher. 2022 will be a crucial year in which the dust from 2020 settles and the remaining portion of the semi-processed material built up in 2020 is released.

Will platinum run out?

“This strong jump in production is expected to outpace demand levels for (2021) and in 2022, and the platinum market should remain in surplus until at least 2024,” Burke said in December.

Why should you buy platinum?

There are also other factors that determine platinum's price: Like silver, platinum is considered an industrial metal. The greatest demand for platinum comes from automotive catalysts, which are used to reduce the harmfulness of emissions. After this, jewelry accounts for the majority of demand.