According to precious metals and refinery services provider Heraeus, the gold price continues to show a consolidation phase. Following record highs at the end of December, the market is currently moving sideways within a clearly defined trading range rather than forming a pronounced upward or downward trend.

[After platinum surged to a high of $1,300 and then corrected, it has risen by 40% this year, still emphasizing its industrial attributes] ①After gold prices have accumulated a certain increase, platinum prices are considered undervalued in comparison, offering investment value. ②The demand for platinum in hydrogen energy applications exhibits significant growth elasticity, and the industrial demand for platinum will maintain a stable growth pattern, but the incremental space may become limited as traditional industries slow down. (Finance Link)

After a decade of "simmering," platinum has entered a mode of rushing to buy amid continuous price rise relative to gold, with prices hitting new highs. Through interviews with multiple sources, a reporter from Cailian Press learned that compared to gold's stellar performance in recent years, platinum's former "value trough" is attracting capital inflows. Driven by expectations of supply contraction, jewelers using it as a "flat substitute" for gold, and a significant increase in medium and long-term hydrogen energy demand, the industry generally holds a relatively optimistic outlook for platinum prices in the long term. In the A-share market, shares of platinum industry chain companies such as Sino-Platinum Metals Co., Ltd. (600459.SH), Haotong Technology (301026.SZ), and Huayang New Materials (600281.SH) have strengthened recently, all hovering near their two-year highs. Platinum prices hit a nearly 10-year high Since June, platinum prices have entered a rally mode. According to data from the Chicago Mercantile Exchange, as of June 10, 2025, PLc1 broke through $1,200 per ounce, reaching a nearly 10-year high. As of June 11, the Pt99.95 on the Shanghai Gold Exchange rose by approximately 22% this week. PLc1 price trend. Source: Investing.com "It can be understood as a catch-up rally," Xu Yongqi, chief analyst of metal and new materials at Hua'an Securities, told the reporter. Over the past decade, platinum prices have generally fluctuated considerably. Compared to the strong price trends of gold and silver in recent years, platinum has to some extent formed a "value trough," attracting capital inflows. Zhu Zhigang, director of the Platinum Committee of the Guangdong Gold Association, said in an interview with Cailian Press that the sharp rally in platinum prices in a short period suggests speculative sentiment. Meanwhile, against the backdrop of high gold prices, some upstream merchants in the jewelry market are intentionally increasing efforts to promote platinum as a substitute for gold. A relevant executive from a large domestic jeweler told Cailian Press that since the second half of 2024, the company has been vigorously promoting the sales of platinum series products, as platinum offers higher gross margins compared to gold products. From a fundamental perspective, the continuous pullback in inventory is an important support for the rise in platinum prices. Data from the World Platinum Investment Council (WPIC) shows that global above-ground platinum stocks are expected to fall to 67 mt in 2025, meeting only three months of market demand. In the first quarter of 2025, global total platinum supply fell by 10% YoY to 45 mt, while demand increased by 10% YoY to 71 mt over the same period. In terms of platinum demand structure, automotive catalysts account for 40%, jewelry accounts for 25%, industrial uses (excluding the automotive industry) account for 20%, and investment demand accounts for 9%. Three major A-share platinum industry chain companies In the futures market, shares of Sino-Platinum Metals Co., Ltd., Haotong Technology, and Huayang New Materials in the A-share platinum industry chain have strengthened recently, all hovering near their two-year highs. It should be noted that currently, there are no domestic A-share companies primarily engaged in platinum ore business. One of the main businesses of the aforementioned three companies is the recycling, processing, and manufacturing of platinum group metals (platinum, ruthenium, rhodium, palladium, osmium, and iridium). A representative from Sino-Platinum Metals Co., Ltd. told a Cailian Press reporter that the company is not a mineral resources company. As the prices of the relevant precious metal raw materials have been hedged, their price changes have relatively small impact on the company. The company's main profits come from the processing fees of various precious metal-related products. In fact, Sino-Platinum Metals Co., Ltd. is a new materials company. In terms of capacity, Sino-Platinum Metals Co., Ltd. has the largest platinum group metal recycling and utilization base in China, with an annual capacity of around 10 mt currently, equivalent to the output of a medium-sized mine. The actual recycling volume in 2024 was nearly 15 mt. A company representative told a Cailian Press reporter that after the second phase of the Yimen Precious Metal Recycling and Processing Project reaches full production, the company will have an annual platinum group metal capacity of about 20 mt. The project has recently entered the final stage of trial production and is gradually transitioning to mass production. Haotong Technology's production has been unstable in recent years, with precious metal recycling production volumes of approximately 110 mt, 234 mt, and 64 mt from 2022 to 2024. Previously, the company stated on an investor interaction platform that it produces platinum, palladium, rhodium, silver, gold, iridium, and ruthenium metals. To avoid excessive exposure of company information and prevent competitors from understanding the company's situation, it has not disclosed specific production data. According to public information, as of the end of 2023, Haotong Technology's processing capacity of spent catalysts containing precious metals was approximately 2,600 mt. The first phase of Haobo New Materials' precious metal secondary resource comprehensive utilization project was designed to process 3,000 t/a of spent automotive catalysts, while the second phase was designed to process 12,000 t/a of spent automotive catalysts and 3,000 t/a of spent agents containing palladium, etc. Haotong Technology previously mentioned in an announcement that the originally planned construction capacity of the aforementioned first-phase project was mainly positioned for spent automotive catalyst recycling. At this stage, a centralized and standardized raw material market for spent automotive catalyst recycling has not yet formed, and the overall development of this market has fallen short of expectations, resulting in the underutilization of some of the company's completed capacities. The company has postponed the date for the entire project to reach the intended usable state to September 30, 2026. An industry chain representative told a reporter that the recycling of platinum group metal scrap is dominated by a seller's market, in a state of full competition. The industry adopts a tendering system, with basically one tender per order. Regarding Huayang New Materials, the company has an annual production capacity of 2,500 kg for platinum mesh products and an annual disposal capacity of 1,000 mt for spent catalysts containing precious metals. The long-term bullish trend remains. Zhu Zhigang stated that if the platinum price can steadily break through the high-pressure level of $1,200/ounce, there is still room for further upside in the future market. Otherwise, it may fall back to around $1,000/ounce again. Meanwhile, attention should also be paid to gold prices, as the price trends of the two metals show a certain degree of convergence. In terms of end-use consumption, industry chain insiders told a Cailian Press reporter that, based on the Shenzhen Shuibei Jewelry Trading Market, platinum series products are currently concentrated in the hands of mid-to-upstream wholesalers, and it will take time for these products to reach end-use consumption, with lower acceptance compared to gold. It is worth noting that platinum inventories among leading jewelry retailers are currently low. Taking Chow Tai Seng (002867.SZ) and CHJ Jewellery (002345.SZ) as examples, as of year-end 2024, platinum products accounted for less than 0.5% of their raw material inventories. An industry insider told a Cailian Press reporter that some upstream enterprises in the jewelry market are actively increasing their marketing efforts for platinum products. Once the market reaches a consensus on buying amid continuous price rise, low inventories will struggle to fully meet demand in the short term, potentially continuing to stimulate platinum price increases. Xu Yongqi stated that, from a fundamental perspective, platinum is in a trend of tight supply and strong demand. Global capital expenditures in the mining sector have declined in recent years, and production has pulled back. In the medium and long-term, global demand for platinum related to hydrogen is expected to grow significantly. Compared to gold or other rare minor metals, the current price increase of platinum is not high. After a decade of stagnation, platinum prices are likely to rise overall in the next three to five years, with the potential to reach $2,000 per ounce. An industry chain insider told a Cailian Press reporter that there is still a certain gap between some of the core technologies of domestic hydrogen fuel cells and those of leading countries such as Japan. The platinum-carbon catalyst in hydrogen fuel cells plays a crucial role in catalyzing discharge, with platinum accounting for about half of the catalyst cost. With the development of China's hydrogen energy industry, there is expected to be a significant increase in platinum demand in the long term. WPIC forecasts that the total platinum supply in 2025 will be at its lowest level in five years, with the expected shortage expanding to 30 mt, marking the third consecutive year of shortage. It is projected that by 2030, global platinum demand from hydrogen energy applications will increase from 1% to 11%.

After a clear upward breakout in technical patterns, the precious metals market witnessed a spectacular scene of "silver and platinum soaring together" on Thursday... On one hand, spot silver prices surged by 4.5% during Thursday's trading session, reaching a high of $36.06 per ounce, the highest level since February 2012. On the other hand, spot platinum prices soared by 4.8% overnight and further refreshed their highest level since March 2022 at $1,152 per ounce during the Asian session on Friday. It can be said that these two precious metal commodities, which were unremarkable during the gold rally earlier this year, now seem to be simultaneously embarking on a catch-up rally... In response, industry insiders stated that the simultaneous surge in silver and platinum appears to reflect investors' growing demand for precious metals used in industrial applications. Meanwhile, with gold prices already hovering near a high of $3,400, other precious metal varieties that had lagged behind in gains are now coming more into the sight of physical buyers and investors. Nicky Shiels, Head of Metal Strategy at MKS PAMP SA, pointed out in Thursday's report that the enhanced technical momentum and improved fundamentals across the precious metals sector have provided a boost to these metals. Strong physical silver demand from India and the recovery of platinum demand in China have further strengthened the upward trend. Silver—and sometimes platinum as well—often moves in tandem with gold, which has long been regarded as a timeless safe haven during periods of geopolitical turmoil. Over the past 12 months, spot gold prices have surged by more than 40%, as the escalation of tariff wars initiated by the US has enhanced its safe-haven appeal, and central banks around the world have continued to make substantial purchases. The gains in silver and platinum over the past year have actually fallen far short of those in gold—up 19% and 13% respectively as of Thursday. This scenario is naturally related to their far weaker safe-haven attributes compared to gold. However, in the industrial sector, they are not without value to explore. Silver is a key material for solar panels, while platinum is used in automotive catalytic converters and laboratory equipment. After years of undersupply, both metals markets will still face a supply deficit this year. Catch-up rally begins MKS PAMP's Shiels stated that maintaining silver prices above $35 would be a "critical turning point," and if sustained, it should reignite the interest of retail investors who have been on the sidelines. She further added that given the high leasing rates indicating a tightening market, a potential recovery in demand for platinum ETFs could trigger a speculative rally. According to industry-compiled data, the open interest in platinum ETFs is currently showing signs of a rebound, having increased by more than 3% since mid-May. Meanwhile, inflows into silver ETFs have also been growing continuously since February, with cumulative open interest climbing by nearly 8%. Alexander Zumpfe, a senior trader at Germany's gold refiner Heraeus Group, stated that the recent rally in silver may be driven by a combination of technical momentum, improved fundamentals, and rising investor interest. He pointed out, "After lagging behind gold for several weeks, silver is now catching up, indicating that momentum-driven investors have reignited their interest in silver." Maria Smirnova, senior portfolio manager and chief investment officer at Sprott Asset Management, also noted, "This breakout in silver has been brewing for some time. Silver has made multiple attempts to breach the $35 mark in recent months, making this breakout significant. If changes in technical factors further drive physical investors to buy in the coming days, silver prices could rise rapidly and substantially." Investors are also currently focusing on the US May non-farm payrolls report, which will be released on Friday evening. The poor performance of the US ADP employment data and initial jobless claims on Wednesday and Thursday has strengthened market expectations that the US Fed will cut interest rates at least twice this year. A decline in borrowing costs typically benefits the performance of these precious metals.

[World Platinum Investment Council: Platinum Market Expected to Face Third Consecutive Shortage in 2025, Currently Estimated at 26 mt] The World Platinum Investment Council (WPIC) released the Q4 2024 and full-year "Platinum Quarterly" on March 5 and revised its forecast for 2025. The market is expected to face a third consecutive shortage in 2025, with the deficit deepening, currently estimated at 26 mt. Demand in 2025 is expected to decrease by 5% to 244 mt, though it will remain well above the five-year average since 2020, while total supply is expected to decline YoY by 4% to 218 mt.

A surge in platinum demand, especially from the industrial sector, will exacerbate the global platinum supply deficit in 2023, the World Platinum Investment Council (WPIC) said.

Platinum demand is expected to grow 24% this year, the WPIC said.

In 2023, the challenges of the global supply chain will be gradually alleviated, and the total production of major vehicle models in the world will be about 82.38 million.