Platinum outlook: Do we need to buckle up?

The platinum group metals (PGM) sector has performed very well in general over the past year on the back of a strong rebound in global car sales. Since the end of April, however, we’ve seen a dramatic slump in the prices of these shares.

In our view, the recent price corrections are overdone. The longer-term prospects for the sector remain uncertain, but we’re still upbeat about its potential over the medium term.

Surge… and slump

Since July last year, the prices of platinum, palladium and rhodium have surged following a significant uptick in global car sales, which has more than offset a supply recovery after Covid-19-related stoppages. Since the end of April, however, prices have declined sharply off high levels.