Platinum's consecutive rally reaches a 20-year high; investment opportunities in 2026 are highly anticipated

Platinum has recently performed remarkably well. Since mid-December, platinum prices have risen for six consecutive trading days, reaching a new high since 2008 and surpassing $1,978 per ounce. Over the past year, platinum has gained nearly 120%, far outperforming gold and silver, making it the brightest star in the precious metals sector. Analysts generally expect this trend to continue, with projections that platinum will further advance toward the $2,170 to $2,300 target range by 2026.

South Africa’s Capacity Challenges Intensify Platinum Supply Tightness

Global platinum supply is heavily dependent on South Africa, which accounts for over 70% of worldwide production. However, this key producer is facing multiple difficulties. Aging mine infrastructure, strained regional power supplies, and frequent extreme weather events are intertwined factors that directly impact platinum output.

The ongoing supply contraction has already left clear marks on the spot market. An important indicator of market tension—the one-month leasing rate for platinum—recently surged to a historic high of 14.12%. This elevated rate indicates growing market anxiety over platinum supply. Edward Sterck, Research Director at the World Platinum Investment Council, offers a concerning outlook: 2025 is expected to be the third consecutive year of supply shortages in the global platinum market, with this gap potentially extending until 2029.

Federal Reserve Rate Cuts Boost Funds Shift from Gold to Platinum

The shift in monetary policy has provided new momentum for platinum. Following the Fed’s rate cuts, the entire precious metals sector experienced a collective rally, but the gains in platinum and palladium outpaced those of gold and silver.

What’s the logic behind this? Some institutional funds are executing a strategic rotation. Gold has already reached record highs and is relatively overvalued, while platinum and palladium are undervalued with higher volatility. Consequently, capital is moving from overvalued gold to these less popular but more promising metals, creating a clear investment rotation effect that has directly driven up their prices.

Bull Market Cycle Begins, 2026 Outlook for Platinum Is Optimistic

FXEmpire analyst Muhammad Umair believes platinum has entered a new bull market cycle. Several factors support this view: structural supply shortages that cannot be resolved in the short term, rising global industrial demand, and capital withdrawal from overvalued assets. On a macro level, a weaker dollar, dovish Fed policies, and a declining gold-to-platinum ratio all provide solid support for platinum.

Based on this analysis, Muhammad Umair forecasts that platinum will reach the $2,170 to $2,300 range by 2026, representing over 10% upside from current levels. Deutsche Bank shares a similar outlook, expecting platinum investment demand to rebound to 500,000 ounces in 2026, with a supply-demand deficit accounting for 13% of total supply—comparable to the gaps seen in the past two years. Deutsche Bank also notes that gold will continue its upward trend in 2026, with silver and platinum-group metals following suit, offering opportunities for corresponding rebounds.

The story of platinum continues to unfold. Supply tightness, policy support, and capital shifts all contribute to making platinum a key investment theme to watch in 2026.