Platinum Inventory Levels Explained
Platinum is a rare precious metal used in cars, jewelry, and high-tech devices. Inventory levels refer to how much platinum is stored and available around the world at any time. These stocks act like a buffer between supply from mines and demand from buyers. When demand grows faster than new mining output, inventories drop, creating shortages called deficits. Right now, platinum faces a deep deficit because supply stays flat while demand rises.
Experts at the World Platinum Investment Council, or WPIC, track these levels closely. They report that 2025 will end with an 850,000 ounce deficit. Supply hovers around 7.2 to 7.3 million ounces per year, while demand nears 8 million ounces. This gap comes from strong use in car catalytic converters, which clean exhaust fumes, and growing investment buying. For details, see the WPIC forecast at https://investingnews.com/wpic-platinum-market-forecast/.
Exchange stocks play a big role in inventory. These are platinum bars held in approved vaults that back futures contracts on places like the NYMEX or CME. In late 2024, 360,000 ounces moved into these stocks from investor demand: 92,000 ounces in bars and coins, 142,000 ounces into exchange-traded funds or ETFs, and 126,000 ounces to exchange vaults. Already in 2025, 275,000 ounces flowed into NYMEX stocks, far more than the expected 150,000. This pulls metal off the market, tightening supply. Edward Sterck from WPIC notes that without some reversal, deficits could hit 400,000 ounces in 2026. Check his comments in this video at https://www.youtube.com/watch?v=M9FkBSlE1CY.
ETFs hold about 3.2 million ounces total. If prices keep climbing, investors might sell some to take profits, adding metal back to inventories. Recycling also helps. Higher prices encourage scrap recovery from old car parts, which could narrow the deficit to 486,000 ounces by 2029. Learn more on structural deficits at https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/.
New factors affect inventories too. China, which relies on imports for over 95 percent of its platinum, now calls it a strategic critical mineral. In December 2025, the Guangzhou Futures Exchange or GFEX launched platinum futures. These require physical metal in warehouses for margins, creating fresh demand and locking up stocks. Daily inventory reports on GFEX boost transparency but also highlight tightness. See China’s move explained at https://discoveryalert.com.au/china-platinum-strategic-critical-mineral-2025/ and https://evrimagaci.org/gpt/china-redefines-platinum-market-with-strategic-shift-519421.
South Africa supplies 90 percent of global platinum, but aging mines, power issues, and low prices limit output. Russia adds risk with geopolitics. Slower electric vehicle sales keep demand high for catalytic converters. Overall, low inventories signal higher prices ahead unless recycling or sales unwind the pressure. Sprott insights cover supply shortages at https://sprott.com/insights/, and WPIC’s full 2026 outlook is at https://www.nasdaq.com/articles/edward-sterck-platinum-deep-deficit-again-will-price-keep-rising-2026.
Sources
https://investingnews.com/wpic-platinum-market-forecast/
https://www.youtube.com/watch?v=M9FkBSlE1CY
https://www.interactivebrokers.com/campus/traders-insight/securities/commodities/why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/
https://discoveryalert.com.au/china-platinum-strategic-critical-mineral-2025/
https://sprott.com/insights/
https://evrimagaci.org/gpt/china-redefines-platinum-market-with-strategic-shift-519421
https://www.nasdaq.com/articles/edward-sterck-platinum-deep-deficit-again-will-price-keep-rising-2026