Supply and demand imbalance drives platinum spot prices to approach highs of the past year, while futures positions have risen to near five-year highs.

At a time when gold is trading near its highest levels, the platinum market is starting a strong rally. Data from Wind shows that on June 4th, the spot price of platinum broke through the $1080 per ounce level, approaching its highest point in the past year. Since the beginning of the year, the spot price of platinum has increased by nearly 20%. The core support for this rally lies in the continued intensification of supply shortages. The latest report from the World Platinum Investment Association predicts that by 2025, the above-ground stock of platinum will only be able to meet three months of demand, with global supply in the first quarter decreasing sharply by 10% year-on-year to 45 tons. Meanwhile, increased investment demand has pushed the total open interest in platinum futures on the New York Mercantile Exchange and the net long positions of managed funds to nearly five-year highs, indicating a quiet resurgence of investment sentiment in the platinum market.