Platinum Group Metals: The bull hits the trough

PGM prices fall reflecting shifting fundamentals and investor liquidation; platinum and palladium look increasingly undervalued. Platinum deficits narrowing even as mine supply constricted; gold and investor demand key; jewelry may rise but auto demand falls. Palladium deficits also narrowing; undervalued but upside limited; auto demand weak; mine supply limited; investor interest modest. Platinum prices have skidded lower since our last Outlook (23 June). After hitting USD2,918/oz on 26 January, prices slumped as the strikes on Iran buoyed oil and the USD and yields, triggering sharp declines in gold but also platinum. Underlying fundamentals also shifted against platinum as auto demand fell. Anticipated jewelry demand rose, but not significantly. Heavy liquidation in the ETFs helped press platinum lower. The market may now be undervalued, however. The market will remain in deficit, according to our supply/demand model, though we forecast a narrowing deficit for 2026, followed by a wi