This year the world may face the largest platinum supply in 50 years, the Financial Times cites data from the World Platinum Investment Council - WPIC. According to the latter's calculations, it will amount to 983,000 ounces - a 77% increase over the forecast made three months ago. The reason is that mining of the precious metal is facing difficulties amid growing demand. In particular, it has slowed down in South Africa, which is its largest producer, due to higher prices for electricity.
At the same time, demand for platinum is growing, for example, from the Chinese chemical and glass industries. In addition, it is becoming increasingly popular in the automotive industry, displacing palladium.
Another factor supporting platinum is the growing interest of investors in precious metals (especially gold) against the backdrop of problems in the U.S. economy and the threat of a U.S. default. Now the public is closely watching how the U.S. government decides to raise the debt ceiling, especially since the country will no longer have enough money to meet its debt obligations on June 1.