Platinum market will be in deficit in 2023

Platinum was the most profitable precious metal in 2022, rising by 11%. Silver followed it with an increase of 3%. Gold did not change by the end of the year. Unsatisfactory results were shown by palladium, which fell by about 6% in 2022. 

In its latest quarterly report, the World Platinum Investment Council (WPIC) indicated that the global platinum market might face some difficulties in 2023. According to forecasts, demand for the precious metal will rise by almost 20%, reaching 7.7 million ounces. At the same time, supply will increase by only 2% to 7.4 million ounces. Therefore, the global platinum market might face a deficit of approximately 300,000 ounces by the end of this year. 

WPIC’s CEO Trevor Raymond highlighted that the forecasted deficit is the result of demand and supply imbalance. While platinum demand continues to rise, its supply remains below the pre-pandemic levels of 2019. In addition, platinum has quite a unique position in the market of precious metals, as its demand increases even with forecasts for a recession.