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Platinum Price Forecast: 2021 and Beyond

In this article, we examine whether platinum could be an interesting investment for the coming years. We will discuss the price development of recent years; then, we will look at the current price. We’ll discuss the applications of platinum, the platinum price forecast, and the causes of the price drop. Finally, we will look at the opportunities of investing in the precious metal PL. What is the future of platinum prices? Read on to find out.

The article covers the following subjects:

Platinum: A Recent History

Platinum began 2020 at $985 an ounce and ended the year at slightly above $1,000 an ounce. Over the past year, the security asset price declined in March to a record low of $606, along with a massive sell-off of assets and other precious metals amid the pandemic, and then gradually reached its range of $950-1,000 per ounce. Despite the volatility, platinum stabilized, and investors perceived the depreciation as a buying opportunity.

Platinum is a relatively cheap, historically undervalued precious metal, which attracted the attention of investors in 2020. The volume of shares in platinum exchange-traded funds reached a record 3.8 million ounces in August, having increased by 543,000 ounces, which is an all-time high. Net purchases of platinum bars in Japan exceeded 200,000 ounces in the first half of 2020, the highest since the first half of 2016.

In the first half of 2020, demand for platinum increased sharply on the Shanghai Gold Exchange (SGE). At the same time, the demand for jewelry grew slightly. As a result, demand decreased in the second half of the year. However, the large lag of platinum from gold and new jewelry designs have partially restored interest in white metal.

After Joe Biden’s victory in the presidential election, the following may happen: platinum will become more expensive than gold. The fact is that the United States and other leading countries are switching to green energy while reducing the consumption of fossil fuels. Hydrogen is a key element of green energy.

Platinum will play a critical role in the hydrogen economy. This precious metal is essential for fuel cells and the production of hydrogen through the electrolysis of water. A major platinum rally is expected in 2021 due to reduced supply, as well as increased demand due to the increasing popularity of hydrogen as an energy source.

Platinum Price Today

Today, platinum is traded at $1 090.73. You can refer to this article to see the platinum price tomorrow.

Below is an interactive platinum-to-dollar price chart that shows the platinum rate for buying and selling:

Platinum Price Predictions by Experts

Let’s see what industry experts have to say about the price of platinum:

1. Investinghaven

According to their platinum forecast, we should expect a bullish breakout in 2021. The market price ultimately has an upside PL potential of 80% ($1800/oz) in 2022 or beyond. In 2021 we see price targets of $1,350 and $1,500. The prerequisite was that platinum would break above $1045/oz, which it did. The Investinghaven 2021 forecast for platinum is wildly bullish.

2. Walletinvestor

If you are looking for commodities with good returns, platinum can be a profitable investment option, according to Walletinvestor analysts. Based on their platinum forecast, a long-term increase is expected; the expected platinum rate for Mar 6, 2026, is 1,379.590 USD per ounce. With a 5-year investment, the revenue is expected to be around +14%.

3. Neal Froneman

Neal Froneman, the CEO of the world’s No. 1 platinum mining company Sibanye Stillwater Ltd, said the price of the white metal could climb more than 80% over the next four to five years as the world economy recovers and supply drops. “Platinum has only just started to recover, and it will continue,” Froneman said. He also added that “There is no reason why platinum will not eventually trade at $2,000 an ounce and probably even higher.”

Platinum Long-Term Technical Analysis

First, we’ll do a technical analysis of the XPTUSD prediction chart on the monthly timeframe.

There’s an ambiguous situation here. As a fast upward movement of XPTUSD quotes and an update of local highs suggest, there’s a bullish trend starting in the platinum price chart. On the other hand, the upward movement is developing amid a lower trading activity, pointing to buyers’ weakness.

Whether or not platinum will overcome the resistance level at 1,200 USD and continue rising or pull back from that level and confirm a flat scenario will become clear in the coming months.

Platinum Forecast For Next Three Months

Let’s analyze a weekly timeframe to make a realistic forecast for platinum for the next three months.

To make the situation clearer, let’s take a look at MACD. As the current peak was forming, the indicator’s moving average crossed the signal curve from above and headed to zero (blue oval). Together with the diagram’s move to the negative zone, that signal confirms that platinum’s future price will be falling.

Thus, a bearish forecast is the likeliest one. As the trend is cyclic, the platinum projected stock price will drop in the next 2-3 months. A strong psychological level of 1,000 USD limits a projected fall.

If bulls fail to consolidate the price of 1,000 USD, there will be a chance to open short positions with a tight stop loss. That will put bigger pressure on buyers. The next projected target will be a support level at around 561 US dollars. 

XPTUSD Technical Analysis for 2021

Let’s do a technical analysis of the platinum to US Dollar daily chart and make a detailed prediction for 2021.

Based on the price history and Bollinger Bands variations, I drew projections for each month of this year as per the likeliest scenario of market movements.

The expected Platinum trading range will go from 1,000 USD to 1,200 USD up to the middle of autumn. The short-term correction will most likely end at 1,000 USD, but first, the price needs to break the uptrend’s blue line. It’s still unclear if sellers manage to do that.

The XPTUSD‘s behavior in summer will show how strong platinum’s bearish potential is. If the blue line isn’t broken out, the whole bearish movement risks turning flat.

Platinum is expected to trade above 1,200 USD in October and November, so the range of limits in the projections is quite large. The expected platinum trading range for each month of 2021 is presented in the table below.

Month

XPTUSD price

Minimum

Maximum

June 2021

1,100

1,235

July 2021

1,035

1,235

August

 2021

990

1,300

September

 2021

1,030

1,350

October

 2021

1,090

1,420

November

 2021

1,170

1,440

December

 2021

1,260

1,460

XPTUSD technical analysis is presented by Mikhail Hypov.

Platinum Price Forecast 2022

Below is a platinum price prediction graph for 2022. Please remember that a long-term platinum forecast is very approximate and is subject to change at any time.

Month

Open

Low-High

Close

Mo,%

Total,%

2022

Jan

1296

1296-1445

1376

6.2%

15.3%

Feb

1376

1271-1405

1338

-2.8%

12.2%

Mar

1338

1338-1492

1421

6.2%

19.1%

Apr

1421

1421-1584

1509

6.2%

26.5%

May

1509

1344-1509

1415

-6.2%

18.6%

Jun

1415

1261-1415

1327

-6.2%

11.2%

Jul

1327

1248-1380

1314

-1.0%

10.1%

Aug

1314

1314-1465

1395

6.2%

16.9%

Sep

1395

1271-1405

1338

-4.1%

12.2%

Oct

1338

1334-1474

1404

4.9%

17.7%

Nov

1404

1270-1404

1337

-4.8%

12.1%

Dec

1337

1337-1491

1420

6.2%

19.0%

Source: Longforecast.com 

Platinum Price Forecast 2023

Next, we have listed a platinum price prediction table for 2023. Even more so for 2023, please keep in mind that long-term forecasts are often unreliable and are created to form an approximate idea of how the value of an asset class will perform in the future.

Month

Open

Low-High

Close

Mo,%

Total,%

2023

Jan

1420

1404-1552

1478

4.1%

23.9%

Feb

1478

1478-1634

1556

5.3%

30.4%

Mar

1556

1387-1556

1460

-6.2%

22.4%

Apr

1460

1444-1596

1520

4.1%

27.4%

May

1520

1415-1563

1489

-2.0%

24.8%

Jun

1489

1489-1660

1581

6.2%

32.5%

Jul

1581

1543-1705

1624

2.7%

36.1%

Aug

1624

1543-1705

1624

0.0%

36.1%

Sep

1624

1544-1706

1625

0.1%

36.2%

Oct

1625

1470-1625

1547

-4.8%

29.7%

Nov

1547

1511-1671

1591

2.8%

33.4%

Dec

1591

1570-1736

1653

3.9%

38.6%

Source: Longforecast.com 

Long Term Platinum Price Prediction 2025-2030 

In this period, the platinum price would rise from $2,805 to $4,622. Platinum will start 2028 at $3,506, then soar to $3,508 within the first half of the year, and finish 2028 at $3,582. It is about +196% from today. Platinum may reach $4,144 by the end of 2030. Please note that while it may be possible to predict if the platinum price will increase tomorrow, such long-term forecasts are pure speculation and cannot be used to make reliable predictions. 

Year

Mid-Year

Year-End

Tod/End,%

2025

$2,805

$2,806

+132%

2026

$3,036

$3,230

+167%

2027

$3,294

$3,506

+190%

2028

$3,508

$3,582

+196%

2029

$3,672

$3,856

+219%

2030

$3,966

$4,144

+243%

Source: Coinpriceforecast

How Much Has the Price of Platinum Change Over Time?

Is the platinum price expected to rise? We can’t predict with certainty what the price of platinum will be in the next 10 years, but we can look back at the price history. This can help us make more reliable predictions. Below is a historical price chart that shows how the price of platinum changed over the past 10 years:

Source: Macrotrends.net

Factors that Affect the Platinum Price

Platinum is a precious metal that is rarer than gold. The metal cannot be found in many places in the world. It is mainly mined in South Africa. Furthermore, the precious metal can be found in Russia and Canada. Unlike gold, platinum is also widely used industrially. More than 50% of the demand comes from the industry. The greatest demand comes from the automotive sector. The metal is widely used for catalysts. In addition, it is used for various other industrial applications. This includes electronics, paint, and petroleum.

The following factors can affect the price of platinum:

1. Diesel Scandal

Platinum is widely used for catalytic converters in the automotive sector. The use of this precious metal helps to reduce harmful exhaust gases. The diesel scandal in the automotive sector has had a negative impact on the demand for diesel cars. As a result, the demand for platinum has also decreased.

2. Trade Wars

As we stated earlier, platinum is also used industrially. As a result, trade disputes have had a negative impact on the demand and, therefore, the price of the platinum projections.

3. Hydrogen

Will we all drive electric cars in the future? Or are we switching en masse to hydrogen? Car manufacturers such as Volkswagen and Audi are investing heavily in driving on hydrogen. A relatively large amount of platinum is required for the catalysts in fuel cells. Increasing investments in hydrogen will therefore lead to a significantly higher demand for this precious metal.

4. South Africa issues

About 70% of the platinum mines in South Africa are currently loss-making. These mines are only in production because of the low employment in the country. This is because closing will lead to even fewer jobs. However, keeping these mines open at current platinum prices seems an untenable situation. Strikes and the closure of these mines will lead to a significantly lower supply of this precious metal. This will have a positive effect on the projected value of platinum.

5. Scarcity 

Platinum is a rarer precious metal than gold. It can be assumed that precious metal prices will continue to rise in the long run. After all, there are exhaustible resources. Since platinum is rarer than gold, the negative platinum-gold ratio could very well be only temporary.

What Is the Future of Platinum? Is Platinum a Good Investment?

Given the current price and opportunities, investing in platinum can be a great way to diversify the portfolio. The price is volatile because it has many industrial applications. 

Platinum is very attractive at the moment. In recent years, this precious metal has become increasingly cheaper compared to other precious metals. The precious metal is not only used for catalytic converters in cars; it is also used in jewelry and bought as an investment object. The platinum price estimation for 2021 is as follows:

Month

Open

Low-High

Close

Mo,%

Total,%

2021

Mar

1193

1110-1234

1171

-1.8%

-1.8%

Apr

1171

1078-1192

1135

-3.1%

-4.9%

May

1135

1135-1265

1205

6.2%

1.0%

Jun

1205

1145-1265

1205

0.0%

1.0%

Jul

1205

1186-1310

1248

3.6%

4.6%

Aug

1248

1248-1391

1325

6.2%

11.1%

Sep

1325

1325-1477

1407

6.2%

17.9%

Oct

1407

1254-1407

1320

-6.2%

10.6%

Nov

1320

1208-1336

1272

-3.6%

6.6%

Dec

1272

1231-1361

1296

1.9%

8.6%

Source: Longforecast.com 

Once the corona crisis is over, platinum could catch up. As the global economy recovers from the corona crisis, the demand for cars will increase further. Platinum will benefit from this because the use of this precious metal in catalytic converters helps to reduce the emission of harmful exhaust gases. Hydrogen cars contain even more platinum, which means that the car industry will also need platinum in the future.

With a recovery in the economy, the demand for platinum jewelry will also pick up. China, the largest platinum market for jewelry, the platinum projected growth has a lot of potential in the coming years. Finally, more investors will also start to consider platinum, now that the precious metal has become so cheap relative to gold. Make sure to create a free demo account on LiteForex! This way, you’ll be up to date about projected commodities prices, and the user-friendly interface will come in handy if you decide to start investing or trading.

Platinum Price Forecast FAQs

The platinum price has risen because of a stalled gold price as an improved global economy has decreased the need for safe-haven assets, encouraging investors to look elsewhere.

And it looks like the price of the metal could continue to rise. It appears new all-time highs in platinum are on the horizon, especially as the World Platinum Investment Council estimates the increase in investment demand will continue in 2021.

The long-term forecast looks quite optimistic, and many analysts suggest there should be a long-term XPT metal uptrend to a level of 3000 USD or higher over the next five years. However, the daily swings could feature the price drops, reflecting the trade volumes, as well as the supply and the demand in the market at a particular moment.

Therefore, one should employ technical indicators for the market analysis and short-term platinum price forecast for tomorrow.

The best trend indicator to analyze the future platinum price in the short-term outlook is the Bollinger Bands indicator. The combination of the RSI and the Stochastic provides the best performance among oscillators.

Price chart of XPTUSD in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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