Finding platinum value buys in a bull market requires a mix of understanding market dynamics, spotting supply-demand imbalances, and identifying opportunities before prices fully reflect the metal’s potential. Here’s how to approach it in simple terms.
**Look for Supply Shortages**
Platinum has been experiencing significant supply deficits recently. For example, the market recorded nearly a million ounces shortfall in both 2023 and 2024, with expectations that this shortage will continue. When demand outpaces supply like this, prices tend to rise over time. So, focusing on periods or companies tied to constrained platinum supplies can reveal value buys before the broader market catches on.
**Understand Demand Drivers Beyond Cars**
Many think electric vehicles (EVs) will reduce platinum demand since they don’t use traditional catalytic converters that rely on platinum group metals. But industrial uses have remained surprisingly strong—about 30% of total consumption comes from sectors like glass manufacturing, medical applications, and hydrogen fuel cells used in green energy technologies. These growing areas help keep demand robust even as EV adoption rises.
**Watch Technical Breakouts**
From a price chart perspective, platinum recently broke out of long-term consolidation patterns that had kept it stagnant for years. Such technical breakouts often signal the start of sustained upward trends—a bull run—making early entry points attractive before momentum pushes prices higher.
**Focus on Companies with Growth Potential**
Look beyond just buying physical metal or ETFs; consider mining companies showing strong exploration results or expanding production plans. For instance, some firms are accelerating mine restarts and increasing drilling efforts at promising targets ahead of schedule due to positive results. These moves can translate into increased future output and profits when platinum prices climb.
**Be Patient but Ready for Corrections**
Even during bull markets, short-term price pullbacks happen as traders take profits or react to news events. Use these dips as chances to add positions rather than panic selling when prices temporarily fall within an overall rising trend.
In essence: seek out signs of ongoing tight supply combined with resilient industrial demand; watch for technical signals confirming bullish momentum; identify mining companies advancing their projects; and stay calm through normal price swings while holding onto your investments poised for growth in this evolving market environment.