Disseminated on behalf of Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) and may include paid advertisements.
- Historically, platinum traded above gold because it is rarer in nature and has unique industrial applications.
- While platinum may no longer command a premium over gold, its role in manufacturing, clean-energy technologies and automotive applications remains potent.
- By securing access to one of the world’s richest PGM regions, Platinum Groups Metals Ltd. is positioning itself for a potential revival of platinum demand.
Platinum once carried an aura of unmatched rarity and status, consistently fetching a price premium over gold, but now the valuation pendulum has swung, creating a quiet opportunity that Platinum Group Metals (NYSE American: PLG) (TSX: PTM) is striving to capture through its large resource Waterberg project. The company is actively working to develop the Waterberg platinum and palladium project in South Africa’s Bushveld region and is laying the groundwork to benefit from any revival of platinum’s market prestige and industrial role.
Historically, platinum traded above gold because it is rarer in nature and has unique industrial applications such as catalytic converters, jewelry and fuel-cell catalysts. For example, one analysis noted that in 1970, platinum was priced at about $151.67 per ounce while gold stood at $35.94, more than four times the value of gold at the time (https://ibn.fm/1ZmnV). Over the past decades, platinum’s rarity and industrial importance gave it a high standing relative to gold, earning it a status as a precious metal with both luxury appeal and industrial utility.
Today, platinum’s luster has dimmed in the investor’s mind. Gold currently trades significantly above platinum, reversing historic norms. As of the end of October 2025 platinum was trading close to $1,600 per ounce while gold was over $4,000, near record highs, and making gold approximately two and a half times more expensive than platinum. This dramatic price divergence reflects both shifting investor perceptions, where gold remains the go-to safe haven, and changing industrial demand and supply dynamics for platinum.
Despite the loss of prestige, platinum has quietly demonstrated a level of stability that merits closer attention. In October, platinum was priced at approximately $1,581 per troy ounce, up more than 50% over the prior year, indicating there remains robust demand and constrained supply (https://ibn.fm/fbgZ4). Moreover, the U.S. Geological Survey (“USGS”) notes that platinum-group metals (“PGMs”) such as platinum have unique properties: high melting points, exceptional resistance to wear and tarnish, and strong catalytic functionality, underlying the rationale for broad and long-term industrial use (https://ibn.fm/h1B2l). Those attributes mean that while platinum may not currently command a premium over gold, its role in manufacturing, clean-energy technologies and automotive applications remains potent.
Enter Platinum Group Metals Ltd. The company’s flagship Waterberg Project in South Africa’s Bushveld Igneous Complex is a bulk underground platinum-palladium deposit projected to produce for decades. The company holds a 50.29% beneficial interest in Waterberg, a project described in a September 2024 Feasibility Study as hosting proven and probable reserves of 23.41 million ounces of PGMs and gold (246 million tonnes at a grade of 2.96 g/t of combined platinum, palladium, rhodium and gold) with a projected production life of 54 years. By securing access to one of the world’s richest PGM regions, the company is positioning itself for a potential revival of platinum demand, not just as a precious metal but as a critical industrial input.
Platinum Group Metals also emphasizes the industrial dimension of platinum, noting that platinum and related PGMs are utilized in a number of industrial processes, technologies and commercial applications, including catalytic converters, electronics and chemical processes (https://ibn.fm/Xuumi). The company seeks to align its strategy with the broader narrative that platinum’s future may hinge more on industrial demand than luxury appeal, a shift that could enhance its value proposition if markets begin re-recognizing platinum’s strategic relevance.
Furthermore, the global supply of platinum is concentrated and subject to disruption. South Africa supplies the vast majority of platinum globally, meaning any production disruption, geopolitical constraint or mine expansion delay can tighten supply significantly. This adds a layer of contention to the notion that platinum has “fallen out of favor”; it may simply be entering a phase where supply risk and industrial demand interplay more subtly than in the gold-led investor boom. For Platinum Group Metals, operating in one of the key supply regions offers a strategic vantage point.
In the context of a changing market where platinum may be undervalued relative to its long-term industrial and supply fundamentals, Platinum Group Metals stands out as a company with both exposure to the rising PGM complex and a long-life project positioned to benefit if platinum recaptures its pedigree. While gold may dominate today’s headlines, platinum’s quiet resilience and growing industrial importance suggest it may be overdue for a reappraisal, and Platinum Group Metals Ltd could be among the companies best placed to harness that shift.
For more information, visit www.PlatinumGroupMetals.net.
NOTE TO INVESTORS: The latest news and updates relating to PLG are available in the company’s newsroom at https://ibn.fm/PLG
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