Platinum, now trading around $1,100 an ounce, is up 15% in the past 12 months but has lagged behind gold, silver, and other platinum-group metals, such as palladium and rhodium, in recent years. Platinum demand for diesel-engine pollution controls fell in the wake of Volkswagen’s (ticker: VOW. Germany) emissions scandal in 2015.
Platinum peaked more than a decade ago at $2,250 an ounce when it traded at a premium to gold. It’s now at a 40% discount to gold, which is fetching $1,800 an ounce. However platinum could head back toward its old high in 2021 because of massive supply constraints, resilient automotive demand, new uses such as hydrogen fuel cells, and investment interest.