Platinum and Currency Devaluation Explained

Platinum is a rare shiny metal used in cars, jewelry, and new energy tech like hydrogen fuel cells. It sits in the same family as gold and silver, often called precious metals. Right now, as of late 2025, platinum trades around $1,902 an ounce, with some experts seeing it climb to $2,340 or higher next year.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ Prices have jumped lately, hitting a 17-year high thanks to tight supplies from mines in South Africa, which make over 70% of the world’s platinum.https://www.sharecafe.com.au/2025/12/18/metals-surge-as-rate-cut-hopes-rise/https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929

Currency devaluation means a country’s money loses value over time. This happens when governments print too much cash, rack up huge debts, or cut interest rates a lot. The US dollar has faced this pressure from high debt, expected Fed rate cuts of up to 100 basis points in 2026, and shifts away from dollar dominance called de-dollarization.https://www.moomoo.com/news/post/62470436/td-securities-releases-2026-commodities-outlook-platinum-and-palladium-to https://goldinvest.de/en/gold-rally-continues-bmo-raises-forecasts-for-2026-again/ When the dollar weakens, it makes platinum cheaper for buyers using other currencies, boosting demand and pushing prices up.

Think of platinum as a shield against devaluation. Investors buy it like gold to protect wealth when paper money might buy less tomorrow. In 2025, platinum demand beat supply by nearly a million ounces, with more shortages expected due to mining floods, slow recycling, and rising car use.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 Looser money policies and dollar slides added fuel, similar to gold’s 60% rally past $4,200.https://www.morningstar.com/news/dow-jones/202512096273/silver-hits-fresh-record-on-us-rate-cut-bets-supply-tightness

A strong dollar hurts platinum, as seen in past drops from 2016 to 2020 when the greenback gained and diesel car sales fell in Europe.https://www.litefinance.org/blog/analysts-opinions/platinum-price-prediction-and-forecast/ But today, the opposite plays out. Tariffs, geopolitical risks like tensions in Venezuela, and new Chinese trading contracts squeeze supplies further.https://www.sharecafe.com.au/2025/12/18/metals-surge-as-rate-cut-hopes-rise/https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929 TD Securities predicts platinum will lead precious metals higher in 2026, with US vehicle demand up and tariff risks sparking short squeezes.https://www.moomoo.com/news/post/62470436/td-securities-releases-2026-commodities-outlook-platinum-and-palladium-to