In Q4 2020 Platinum posted a deficit of 170 koz as strong demand in the auto, industrial and jewellery sector sustained strong investment demand for Platinum.
Supply is weak
The deficit for the Platinum market was the largest on record with a 2020 total of -932 koz. Total demand dropped by 7%, the sharp decline in mining supply of 20% (1203koz), and the total supply fell by 1413 koz.
A deficit is set to remain
As economies get back to normal on the global vaccination programme the demand for platinum is forecast to increase by 3% and supply to recover to 17%. The net result, however, is still to be a deficit of -60Koz in 2021 with a third annual deficit.
The strong time for Platinum looks to have now passed, (which was the start of the year). However, there may still be some dip buyers on retracements to key technical areas due to the supply deficit forecast this year.
Platinum is worth making a note to revisit at the end of the year when the seasonals are stronger.