Edward Sterck: Platinum Heading for a Record Deficit – Price Catalysts Flaring Up!

Investor sentiment around Platinum prices continues to remain soft, despite ongoing attempts by market participants to contain losses. Edward Sterck, Managing Director at Saxo Bank, recently weighed in on the situation, suggesting that fundamental catalysts are slowly beginning to take effect. Sterck noted that output from major Platinum producers, such as Sibanye-Stillwater and Impala, is lagging behind demand. In this period of weak supply, investors may need to embrace the opportunity to buy at current prices. Further, Sterck suggested that Platinum prices may experience “some upside” in anticipation of breaking the all-time deficit record, currently set at 590,000 ounces in 2004. Aside from supply dynamics, Sterck also believes that the vehicle industry will play a major role in shaping Platinum prices going forward. While the industry remains in the early stages of its recovery from the COVID-19-related dip, Platinum demand from vehicle manufacturers is expected to remain strong. As a result, Sterck believes that Platinum prices could move upwards in the coming months. Despite the apparent bullish sentiment among market participants, Sterck cautioned that Platinum prices still remain relatively low compared to the all-time highs of $2,741 back in 2008. Additionally, a sharp rebound in Platinum prices could pose some challenges to the sector, as investors may be tempted to sell when prices reach a certain level. Although Platinum prices have remained relatively muted in recent months, Sterck’s viewpoint serves to remind investors of the potential opportunities that still exist in the commodity market. With investor sentiment slowly turning more bullish, and the prospects for a major Platinum rally on the horizon, investors may do well to consider a more bullish stance on Platinum going forward.