As gold prices remain relatively stable just below the $3,400 per ounce level, investor attention is beginning to shift. Recent geopolitical tensions in the Middle East have provided some support to gold, but its momentum appears to have stalled. In contrast, platinum has emerged as a standout performer in the precious metals sector, breaking above the $1,300 per ounce mark for the first time in five years. This rally represents a year-to-date gain of more than 44%, driven by a combination of tightening supply, shifting consumer demand, and growing investor interest.
The platinum market is currently facing a significant supply deficit, projected to reach nearly one million ounces in 2025. This shortfall, combined with constrained recycling—only about 25% of platinum supply comes from recycled catalytic converters—is putting considerable pressure on above-ground inventories. As a result, lease rates for platinum have climbed, further signaling tightness in the physical market. These conditions have created an environment ripe for a sustained price rally.
Palladium has also increased by ~10% in the past year and analysts are calling for higher prices due to an ongoing supply deficits. Palladium may rise in the short term as all the precious metals appear to be rallying.
Investor sentiment is also shifting. With gold trading at historically high levels, some analysts are pointing to a case of “gold fatigue.” This has sparked a rotation into undervalued precious metals, with platinum emerging as a compelling alternative. Exchange-traded funds (ETFs) and direct investment in platinum bars and coins are gaining traction. Meanwhile, in key consumer markets like China, platinum jewelry is regaining popularity. In Q1 2025, platinum jewelry demand rose 26%, while gold jewelry sales declined by 32%, signaling a significant change in consumer preference likely influenced by platinum’s more accessible price point.
Price chart illustrating price of Platinum(in blue) and Palladium (in burgundy) in the last year.
For New Age Metals, these market dynamics present a clear opportunity. As a company focused on the exploration and development of platinum group metal (PGM) projects, including the River Valley Palladium Project in Ontario, the rise in platinum prices underscores the strategic importance of advancing North American PGM assets. With geopolitical risks and logistical constraints affecting traditional PGM-producing regions like Russia and South Africa, domestic sources of platinum and palladium are becoming increasingly valuable.
Furthermore, the forecasted supply deficit and the growing role of PGMs in industrial applications—such as catalytic converters, hybrid vehicles, and the hydrogen economy—reinforce the long-term relevance of these metals. Platinum and palladium are not just precious—they are critical. Both the U.S. and Canadian governments have designated PGMs as critical minerals, opening the door to potential government support, fast-tracked permitting, and increased investor interest.
Chart illustrating projected hydrogen fuel cell EV cars up to 2030.
As the precious metals market enters a new phase, the resurgence in platinum may prove to be more than a short-term rally. It reflects deeper structural changes in supply chains, consumer behavior, and investment strategies. New Age Metals is well-positioned to benefit from this transition and will continue to provide updates as we advance our PGM projects in this promising market environment.