Platinum has surged past $1,100 an ounce — and it’s got investors asking: is this the start of a long-term trend? At the 49th annual IPMI Conference in Scottsdale, AZ, Ed and Rich sat down with Denis Yacinthe, Senior Director at Jack Hunt Coin Broker, to discuss what’s behind platinum’s momentum and where it might be headed. 

Supply Deficits Are Driving the Market 

One of the biggest forces behind platinum’s rise is a growing supply deficit. Mines, particularly in South Africa, continue to struggle with constrained production and rising costs. At the same time, scrap inflows from catalytic converter recycling have slowed compared to prior years. 

With fewer ounces entering the market from both primary and secondary supply, platinum prices are finding strong support. 

The Gold-to-Platinum Ratio Signals Value 

Historically, gold trades at about three and a half times the price of platinum. Recently, that ratio has narrowed closer to 2.5:1, highlighting platinum’s undervalued position. 

As gold prices surge, institutional investors are increasingly turning to platinum as the “value play.” For the first time in two years, funds have gone net long on platinum futures — a sign of confidence that demand is picking up. 

Rising Investment and Jewelry Demand 

While gold is traditionally seen as the flashy investment metal, platinum is gaining traction with both retail and institutional buyers. Jewelry demand, particularly in Asian markets, is also rebounding. 

Platinum jewelry is often “stickier” than bullion investments — once purchased, it tends to stay in the family rather than being liquidated during short-term price moves. This creates more stability in overall demand. 

Hybrid Vehicles Could Boost Industrial Demand 

Although EV growth has slowed, hybrids are expanding rapidly — and hybrids typically require heavier platinum group metal (PGM) loadings than standard ICE vehicles. This shift could further support platinum demand in the automotive sector. 

In addition, substitution trends continue: platinum is being used in place of palladium in some auto catalyst applications due to its relative cost advantage. 

Secondary Supply Is Tightening 

Dealers like Jack Hunt are already seeing tighter buy/sell spreads in platinum — something not seen in years. This reflects both constrained secondary supply and growing investor demand. 

With fewer scrap catalytic converters and other sources feeding the market, availability is expected to remain tight, pushing premiums higher and giving refiners incentive to increase production of platinum bars and coins. 

Long-Term Outlook for Platinum 

Denis Yasinthe believes we’re only in the early stages of platinum’s breakout. While short-term volatility is expected, the combination of supply deficits, tightening secondary flows, jewelry resurgence, and industrial substitution points to a bullish long-term case. 

He suggests investors watch the gold-to-platinum ratio closely: if it climbs back toward 3:1, it could be an attractive entry point. But even at today’s levels, platinum looks well-positioned for steady gains. 

What This Means for Recyclers 

For catalytic converter recyclers, platinum’s rally underscores the importance of knowing when to sell. With hybrid demand rising and substitution trends accelerating, converter values could shift significantly in the coming years. Staying ahead of these market dynamics will help recyclers maximize profits before supply-driven price swings take hold. 

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