Is This Metal About to Rip, Again?
It doubled in price last year - will it do it again this year?
You guys know I like platinum. It was one of my best performing investments last year.
I didn’t think we’d get a second shot at this opportunity, but there’s a possibility that platinum could rally again…
You may remember how many times I talked about platinum prior to late 2025. Beyond speaking at multiple events about it, I published a video, and wrote several articles (like here and here).
From May 2025 through Feb 2026, platinum more than doubled in price. The PPLT 0.00%↑ ETF doubled and several platinum miners went up 500% or more.
There were many reasons for this price explosion (that I won’t repeat here), but there is a new-ish driver that the market was previously discounting, heavily.
Beyond the fact that investors had hated all metals (precious or not) previous to 2025, platinum was also ignored because there was a general consensus that electric vehicles were the future.
Considering that one of platinum’s major use cases is in catalytic converters, investors assumed that demand for the silver metal was going to drop off a cliff.
Now, with government subsidies for EV’s expiring, that momentum could be slowing down. At least, that’s what the data says:
“For the past four years in California, buyers took home more new EVs than hybrids. But in the first half of 2026, 22.1% of new cars sold were hybrids, compared with 15.9% EVs.” -WSJ
Now, I’m not arguing that EV’s are going away. I’m just pointing out that traditional ICE vehicles aren’t being phased out as quickly as investors thought they were.
The demand for platinum for catalytic converters will likely continue, and there are new demands coming…
Platinum for Green Hydrogen
Saudi Arabia just completed construction of an $8.5 billion green hydrogen project in its NEOM development.
Meanwhile South Korea, Spain, Germany, and others are also working on developing green hydrogen facilities - all of which use platinum.
The platinum is used in electrolyzers to split water into carbon-free hydrogen fuel. This fuel is then used to power all sorts of things - most importantly the actual electricity that the world is so in need of.
But it’s not just the use cases of platinum that seems to be ignored. It’s the intrinsic value of the metal as a store of wealth that is distorted right now as well.
Platinum is Cheap Again?
A couple of years ago I was arguing that platinum was interesting simply because of its price relative to other metals - especially gold.
In April of last year, the gold to platinum ratio was going off the chart. This was the exact time that platinum started its march higher, doubling in nine months.
Now, in 2026, it looks like this ratio is getting interesting again. Gold continues to go higher, but platinum is lagging.
Over the past five years, gold and platinum performed almost identically, except for the most recent correction in platinum… Where it corrected far more than gold.
But maybe this correction is over?
Platinum looks like it has broken out of it’s falling wedge pattern. A sign that has sent the metal much, much higher in the past.
Finally, when you consider that platinum is more rare than gold, but has similar industrial use cases like silver and copper, you’ve got to wonder why it has drastically underperformed those three other metals over the past decade.
Is platinum due to rip again?
If so, PPLT 0.00%↑ is not a bad way to catch this.
If you want some torque, there are some miners that are very interesting - more on that soon.