Platinum nears $2,000 and palladium tops $1,500 in a supply crisis nobody saw coming

While gold dominates headlines, platinum and palladium are staging a breakout that most investors have completely missed. Platinum touched $2,173.50 per ounce on March 4 and trades near $1,972 as of April 9, representing a gain of over 120% since early 2025. Palladium hit $1,516.20 on April 7, surging 3% in a single session. The World Platinum Investment Council (WPIC) projects a fourth consecutive year of deficit in 2026 at 240,000 ounces, with cumulative shortfalls since 2023 approaching 3 million ounces.

Why This Matters Now

South Africa produces 70% to 80% of global platinum supply and experienced a 24% production decline in April 2025 due to power shortages. Hydrogen economy demand for platinum is projected to add 875,000 to 900,000 ounces by 2030 (WPIC). For palladium, approximately 85% of demand comes from automotive catalytic converters, and the slowdown of the EV transition in the US is extending the demand runway for internal combustion engines.

The China Factor

 China's Guangzhou Futures Exchange (GFEX) launched physically backed platinum futures contracts, and China's palladium imports quadrupled since September versus the previous year, linked to the GFEX launch. This institutional buying is absorbing supply that previously flowed to Western markets.

Direct Quotes:

• WPIC CEO Trevor Raymond: "The key drivers of platinum's price rally in 2025 are expected to persist in 2026."
• Standard Chartered's Suki Cooper: "We continue to expect platinum prices to test higher highs and remain deeply undersupplied in 2026."
• Bart Melek, TD Securities: Believes palladium could "potentially outperform gold in 2026."
• Aberdeen Investments: "Palladium has the potential to continue higher based on a rollback of the EV transition in the US."

Bottom line

Platinum and palladium offer retirement investors a way to diversify within the precious metals space. With platinum's cumulative deficit approaching 3 million ounces and palladium facing potential US anti dumping tariffs on Russian supply (828% margin), Both metals offer supply constrained upside. For IRA investors already holding gold, adding platinum or palladium provides exposure to industrial demand drivers that gold lacks, while maintaining the tangible, inflation resistant properties that make precious metals essential in uncertain times.