The Next Safe Haven? Platinum's "Mojo" Attracting Investor Demand

Fourth consecutive supply deficit

The persistent imbalance between global supply and demand for platinum is one of the key factors supporting Gule’s positive outlook for the precious metal in 2026 and beyond.

Rarer than gold and silver, platinum is by nature also more challenging and expensive to mine and refine. On top of that, 92 percent of the world’s platinum mine supply comes from South Africa, Russia and Zimbabwe. This makes the platinum market prone to labor strikes, power outages, transportation challenges and geopolitical instability.

Aboveground platinum supplies are at historic lows following a significant deficit of 1.082 million ounces in 2025, according to World Platinum Investment Council (WPIC) data. For 2026, the WPIC is forecasting that platinum supply will come up short for the fourth straight year, this time at a projected 240,000 ounces.

"At the same time, many existing mines face challenges related to rising costs and declining investment in new mining projects,” explained Gule. “Therefore, I believe limited supply will remain a key supporting factor for platinum prices in the medium and long term.”

Diversified set of platinum demand drivers

Compared to gold, platinum has a much more diversified set of demand drivers.

The biggest demand segment for platinum by far is its use in catalytic converters in the auto sector, accounting for about 50 percent of annual global consumption. Although auto demand for platinum is expected to contract by 3 percent in 2026, in its Q4 2025 report, the WPIC projects that overall industrial demand will rebound by 11 percent.

Platinum also plays a significant role in electronics, glass manufacturing and chemical processes. On top of that, hydrogen economy technologies and fuels cells are seen as key drivers of industrial growth potential for platinum.

“In my assessment, the global transition toward clean energy and green hydrogen could position platinum as one of the strategic metals in the low-carbon economy over the next decade,” said Gule.

Platinum undervalued compared to gold

Perhaps the most interesting element in the investment case for platinum is that the metal is currently undervalued compared to gold. Due to its relative scarcity and high industrial demand, platinum has historically traded at a premium to gold — at times even twice as much.

The flip came after the 2008 financial crisis, when automotive demand for platinum fell dramatically, causing the price to slide from over US$2,200 per ounce to US$800. Since then, platinum has continued to trade at a discount to gold. At lower prices, not only does platinum offer a better value for precious metals investors, but also “catch-up” potential.

“In my view, this pricing gap represents a potential opportunity for price rebalancing in the medium term, particularly if current market fundamentals continue to improve,” stated Gule. “Moreover, record-high gold prices could push some investors and the jewelry industry to shift toward platinum as a more attractive value alternative.”

Rising demand for platinum ETFs, bars and coins

Growing investor interest in platinum as a safe-haven asset is reflected in rising inflows into platinum bars and coins, as well as platinum ETFs. The WPIC reports that platinum ETF holdings increased by 234,000 ounces in 2025, and it expects ETF holdings to remain steady in 2026. In addition, it's forecasting that bar and coin investment will grow by 35 percent in 2026 to hit 725,000 ounces, reaching the highest level recorded in the WPIC's dataset.

The growth in purchases is gaining traction from increased availability of platinum retail investment products. For example, earlier this year, Rakuten Securities launched a platinum-focused investment trust in Japan. Called the Rakuten Platinum Fund, it offers Japanese retail investors indirect exposure to platinum through a fund-of-funds structure.

Platinum-mining stocks on the shopping list

Platinum-mining stocks are also starting to look more attractive to investors. In a March 2 interview with INN, Lobo Tiggre of IndependentSpeculator.com shared why he’s considering platinum-group metals (PGMs) stocks.

“I underestimated how much the platinum-group metals would respond with gold and silver, and I was not convinced that these really industrial metals, in my view, would tag along for the ride on gold and silver,” said Tiggre. Now, he added, “with the PGMs mostly tracking silver more than gold, to my mind, that's investable.”

After the platinum price diverged from gold in 2008, the metals market guru wasn’t sure it would ever fall back in line. But now that platinum has got its “mojo back” and is once again “track(ing) the monetary metals,” he’s thinking about adding platinum-mining stocks and palladium-mining stocks to his shopping list.

"If we have a buying opportunity in gold and silver, I would also looks at PGMs at that time, which I would not have a year ago," he said, emphasizing that he would want to see a price pullback before doing so.

Platinum investment caveats

While the investment case for platinum is looking up, there are a few caveats to keep in mind with this market. For one, like silver, platinum as a hybrid industrial and precious metal is much more volatile than gold as its price can experience steep drops in value during economic upheaval. Also, the fact that the platinum market is much smaller than that of gold means there’s much less liquidity, making it harder to sell when investors see the need to exit.

For more insight into what’s likely to move the platinum market in 2026 and beyond, check out INN’s latest interview with Edward Sterck, director of research at the WPIC.