Over the past decade, palladium demand normally exceeded one for platinum, so that platinum – traditionally a more valuable and less discovered metal than gold – become a much cheaper metal than the bullion per troy ounce.

However, right now platinum looks gaining momentum. According to Kitcometals, Platinum is likely to attract serious attention from investors as record industrial demand will cause a severe shortage in the market this year that will last until 2024, according to new research from the World Platinum Investment Council (WPIC).

The platinum market will post a deficit of 1.071 million ounces this year as demand grows and supply shrinks. Industry demand is expected to increase by 317,000 ounces this year to 2.652 million ounces, representing a 14% increase from 2022 and the strongest year on record.

Also, most surprisingly, WPIC said it expects automotive demand to rise to 3.262 million ounces, posting a 6-year high and a YoY increase of 14%. It looks that it may occur at the expense of demand for palladium, since these two metals are somewhat interchangeable.

Since the September 2023 Platinum Quarterly Report 'Q2 2023 forecasted that deficit for 2023 has increased by 66,000 ounces to 1,071,000 ounces, reflecting lower total supply compared with 2022. Volume decreased by 3% and demand increased by 26%.