Platinum Surges on Forecasted Shortage as 2026 Deficit Looms
Platinum prices surged 8% to $1,756.70 an ounce on August 4, outperforming silver and gold futures. This move was largely driven by a forecasted supply deficit in 2026, with the World Platinum Investment Council (WPIC) predicting a shortfall of 297,000 ounces.
The WPIC also expects above-ground stocks to fall to less than three months of global demand by the end of this year, exacerbating the shortage. Despite total demand expected to drop 9% in 2026, the deficit persists due to supply's inability to respond quickly.
Palladium prices also rose 8.24%, while gold futures gained 1.5% and silver futures advanced 4.1%. The abrdn Physical Platinum Shares ETF (PPLT) added 6.64%, closing at $15.74 on volume more than twice its recent average.
While this rebound is a repricing, not a confirmed trend, it highlights the market's focus on the looming supply deficit. WPIC forecasts that platinum will remain undersupplied even with reduced demand.