Platinum’s remarkable performance, surpassing even gold, has caught the attention of investors this year. The surge in platinum prices, up nearly 75% in Australian dollar terms over the last 12 months, has outpaced gold’s steady climb. This surge began in late May, with platinum now trading at $2540.13 per ounce, a significant increase from a year ago.
Experts attribute this price rally to a prolonged market deficit of nearly two and a half years, exacerbated by geopolitical factors such as US-China trade tensions. The World Platinum Investment Council predicts a deficit of 850,000 ounces in the global platinum market for the current year. The supply outlook remains bleak, with mining supply expected to decline by 6% year-on-year.
Geopolitical uncertainties and the imposition of US tariffs have further fueled the surge in platinum prices this year. This has heightened concerns about the security of supply in the platinum market, as above-ground stocks deplete rapidly and competition for the metal intensifies.
Investors looking to capitalize on the platinum boom on the ASX can consider major platinum miner Zimplats Holdings Ltd (ASX: ZIM). Zimplats, valued at approximately $2.1 billion, operates multiple mines and processing facilities in Zimbabwe, selling significant amounts of platinum annually. The company’s stock has surged by 26.2% over the past year.
For those seeking exposure to platinum at the junior level, Southern Palladium Ltd (ASX: SPD) and Podium Minerals Ltd (ASX: POD) offer promising opportunities. Southern Palladium has witnessed a substantial increase in its share price, currently trading at $1.37, as it develops its Bengwenyama Project in South Africa. Podium Minerals, valued at $86.9 million, has seen its stock price rise by more than 100% in the past month as it develops its Parks Reef project in Western Australia.
These ASX-listed platinum companies are riding the wave of the platinum price surge, reflecting investor optimism in the metal’s future prospects. As platinum continues to outshine gold, investors are eyeing opportunities to capitalize on this precious metal’s bullish trend in the market.
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