Move over gold. Platinum is the new king of the metals market.
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Platinum’s price rose 27% in June, its biggest monthly gain in 40 years and outpacing the price of gold, which actually declined 0.2% in June following a blistering 65% rally over the last 18 months. Many analysts say that platinum continues to gain ground as investors rotate out of gold.
Additionally, platinum’s price is benefitting from a global supply shortage that has been ongoing since 2023 and worsened in recent months, pushing the price to a 10-year high of $1,359.56 per ounce. The sharp price increase is helping to lift the stocks of leading platinum miners such as Eastern Platinum (TSE:ELR), Bravo Mining (BRVO), and Sibanye Stillwater (SBSW).
Ongoing Deficit
The World Platinum Investment Council expects 2025 to mark a third consecutive year with a deficit of almost one million ounces of the precious metal. Yet despite its big run in June, platinum is still trading at a price that is less than half the cost of gold, which is currently at $3,351.50 per ounce.
Current options activity suggests Wall Street sees further upside in platinum prices in the months ahead. Data from the Commodity Futures Trading Commission shows that a majority of traders are holding net-long futures positions in platinum, suggesting they see more gains ahead.
Is SBSW Stock a Buy?
The stock of Sibanye Stillwater has a consensus Moderate Buy rating among two Wall Street analysts. That rating is based on one Buy and one Hold recommendations issued in the last three months. The average SBSW price target of $6.05 implies 13.69% downside risk from current levels.
