Platinum Prices Soar 50% in 2024 Amid China Gold Jewelry Sales Collapse
Investors are shifting from gold to more industrial metals like silver and platinum, with the latter seeing a strong rally driven by Chinese
Quick overview
- Investors are increasingly favoring industrial metals like silver and platinum over traditional safe-haven gold.
- Platinum prices have surged to their highest levels since 2020, driven by strong Chinese demand and supply constraints.
- Silver has also reached a 13-year high, reflecting a broader shift in investor sentiment towards metals with industrial applications.
- Ongoing supply shortages and a decline in gold jewelry sales in China are reinforcing the bullish outlook for platinum.
Live PLATINUM Chart
Investors are shifting from gold to more industrial metals like silver and platinum, with the latter seeing a strong rally driven by Chinese demand and tightening supply.
Shift Toward Industrial Metals Accelerates
Both silver and platinum have gained significant momentum over recent months, emerging as standout performers in the precious metals space. Silver broke above $37.30 an ounce, reaching a 13-year high, while platinum surged to $1,327.90, the highest level since 2020.
The rally reflects a broader investor rotation away from traditional safe-havens like gold, which now appears overbought, and toward metals with robust industrial applications. The Federal Reserve’s recent policy update further sparked volatility in the metals space, with gold and silver prices sliding—while platinum defied the trend, rallying yet again.
Platinum’s 4-Week Rally
Platinum prices peaked at $1,305.85 per ounce last Thursday, capping a nine-session winning streak and a 22% rise since early April, when it traded just below $900. Although platinum experienced a short-lived pullback on Friday due to a spike in gold prices following Middle East geopolitical tensions, it quickly regained momentum.
By midweek, platinum had rebounded nearly 10%, climbing back above $1,265 per ounce. Meanwhile, gold and silver fell about 2% on the day, underlining the divergence between precious metals with primarily monetary value and those with strong industrial demand.
China Steps In as a Key Driver of Demand
The primary driver behind platinum’s recent strength is a notable rebound in Chinese demand, particularly in jewelry, coins, and bars. With skyrocketing gold prices—above $3,500 in April—dampening consumer enthusiasm, even China, a traditionally gold-focused market, has turned to platinum.
According to the China Gold Association, gold jewelry sales plunged 27% year-over-year in Q1 2024, totaling just 134.5 metric tons. In contrast, Chinese buyers snapped up 11.5 metric tons of platinum in April, the highest monthly total in over a year.
Supply Shortages Reinforce Bullish Sentiment
On top of the demand boom, ongoing supply constraints have further lifted platinum’s outlook. Analysts warn that 2025 could mark the third consecutive year of global supply deficits, exacerbating the current bullish narrative.
With a 40% gain year-to-date, platinum is now among the top-performing commodities in 2024. Silver, too, has seen over 30% appreciation, although it briefly lagged behind amid post-Fed positioning and recent gold-related pullbacks.
Conclusion: Platinum Takes the Lead in a Changing Metals Market
As inflation fears cool and investors seek assets with dual industrial and monetary value, platinum is stepping out of gold’s shadow. Backed by Chinese demand, structural supply issues, and a shift in investor behavior, platinum’s outperformance may have more room to run in the second half of the year.
While gold may still appeal as a hedge, it’s platinum and silver that are capturing the momentum—and the capital—for now.
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