Pasofino Gold Limited (TSXV: VEIN)
Re-defining the Dugbe Gold Project
Platinum prices have surged by 20% year-to-date, reaching levels not seen since May 2023. Last Friday, the spot price of platinum hit USD 1,096.40 per ounce, marking a four-year high with a weekly gain exceeding 10%. This impressive rally has been primarily driven by a sharp recovery in physical demand from China, heightened expectations of supply shortages, and a renewed investor focus in the precious metals sector.
Chinese demand has played a pivotal role in the price jump, as reports indicate a robust rebound in purchases of platinum bars, coins, and jewelry. This resurgence is occurring even as platinum remains significantly discounted relative to gold, prompting investors to position themselves in search of value. In addition, market analysts are citing forecasted supply gaps, with some experts predicting a potential third consecutive year of supply deficits that could widen the global platinum shortfall dramatically.
Recent data from Chinese Customs underscores the extent of the increased demand. In April, the country’s platinum imports reached 10 metric tons—a 47% month-on-month rise that set a 12-month record. Traders note that while purchases have been concentrated in the USD 950 per ounce range, any further move above the USD 1,000 mark may temper some of the current buying enthusiasm.
This surge in platinum comes as gold continues to record historic highs, with last month’s spot gold price reaching USD 3,500.05 per ounce amid geopolitical tensions and strong central bank buying activity. Despite challenges posed by the electric vehicle market—where platinum is essential for catalytic converters—the anticipated supply constraints and evolving investor strategies have bolstered the metal’s value. Meanwhile, other platinum group metals like palladium have experienced volatility, influenced in part by recent strategic shifts in the automotive industry.
These developments illustrate a dynamic shift in the global precious metals market, where recovering industrial demand in China, supply concerns, and changing investment patterns are collectively reshaping market fundamentals. The sustained rally in platinum prices underscores the delicate balance between industrial needs and speculative pressures, suggesting that the current momentum could continue to influence market behavior in the near term.
