Johannesburg: The palladium price is poised to exceed the platinum price for the first time since 2001, Thomson Reuters said on Tuesday with the publication of its GFMS Platinum Group Metals Survey 2017.
The price gap between platinum and palladium – which averaged just over $1 000/oz between 2007 and 2012 – is now at about $100/oz.
“In our view, it’s more a case of when, not if,” Thomson Reuters precious metals demand manager Ross Strachan said of the prospect of palladium overtaking platinum.
Describing platinum as the worst performing precious metal in the year to date, Strachan said palladium’s persistent large deficit would see it above $850/oz well before year-end.
Last week saw platinum plunge precipitously to $893/oz, its lowest price ratio to gold since 1987, and at the time of going to press, its price was still in the doldrums at $910/oz.
However, platinum’s plunge is seen as being “too far and too fast” with GFMS expecting it to rally to above $1 000/oz this year on the back of weak mine output.
