Platinum is a highly valued precious metal that has been used for centuries in various industries. It is rarer than gold, which is why it is more expensive. In fact, in 2008, platinum was more than double the price of gold. The historical average ratio of platinum to gold is 1.25, meaning that one ounce of platinum is worth 1.25 ounces of gold.
Over the last two decades, the price of platinum has been a rollercoaster ride. At the beginning of the 2000s, platinum was trading at around $400 per ounce. By 2008, it had reached an all-time high of $2,300 per ounce due to supply disruptions in South Africa, which is responsible for 70% of global platinum production. However, after the global financial crisis, the price of platinum dropped significantly and has struggled to recover since then.
Recently, investment bank UBS readjusted its price forecast for platinum in 2023, estimating that the precious metal will cost $1,150 per ounce for June. This is a significant increase from their previous forecast of $950 per ounce. UBS cited the growing demand for platinum in the automotive industry as a key driver of the price increase. Platinum is used in catalytic converters, which reduce emissions from vehicles.