Platinum Group Metals: A Bull Market on the Horizon?
Platinum, palladium, and rhodium—collectively known as Platinum Group Metals (PGMs)—have long played critical roles in both industry and investment. Yet in recent years, these metals have fallen out of favor with mainstream investors. Now, market experts are pointing to signs that the PGM bear market may finally be ending, setting the stage for a potential multi-year rally.
At Indigo Precious Metals, we believe the current market presents a unique opportunity to invest in platinum and its sister metals at historically undervalued levels. For investors seeking diversification, tangible value, and long-term growth, the case for platinum is gaining strength.
A Historical Glance at Platinum Market Cycles
It’s been nearly two decades since PGMs last enjoyed a major bull cycle. In the late 1990s, few paid attention to these metals—or the companies that mined them. But those who did saw astronomical returns. South Africa's Rustenburg Platinum (now Anglo American Platinum) and Impala Platinum soared by 30x and 60x, respectively, before the 2008 financial crisis hit.
Today, after a 16-year bear market for platinum and a four-year decline for palladium, we’re seeing eerily similar conditions: low prices, limited investor interest, and widespread pessimism. That’s typically the perfect time to buy.
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Demand Outlook: Why PGMs Are Far From Obsolete
Much of the market's negativity toward PGMs stems from assumptions that electric vehicles (EVs) will eliminate demand for catalytic converters—which currently consume 65% of all platinum group metals. But experts are now re-evaluating this narrative.
A shift is underway. Hybrid vehicles—not full EVs—are expected to dominate new car sales well into the 2030s. According to Thunder Said Energy, roughly 90 million new internal combustion engines (ICEs) may still be sold annually until at least 2033. And hybrids, in fact, require even more PGMs due to the way their engines switch on and off, necessitating larger catalytic converters.
On top of that, stricter global emissions standards (like the EU7 in Europe, CN7 in China, and Bharat Stage 7 in India) are pushing manufacturers to use even more platinum, palladium, and rhodium per vehicle. This regulatory pressure will keep automotive demand elevated for years to come.
Supply is Struggling to Keep Up
While demand is set to climb, the supply picture is deteriorating. According to the World Platinum Investment Council, the platinum market posted deficits in 2023 and 2024 and is expected to remain short by another 500,000 ounces in 2025. South African mine output—home to 70% of global platinum supply—has been declining due to power outages, political instability, and rising production costs.
At the same time, supply from recycling is shrinking. With cars on the road longer and fewer older vehicles being scrapped, recycled catalytic converter volumes are falling. This tightening supply landscape points to strong upward pressure on prices.
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Investment Demand: Recovery May Be Underway
Physical platinum investment took a hit post-2020, with ETF holdings falling over 75%. But there are signs of recovery. Selling pressure has eased, and new interest in physical bars and coins is picking up again. As global investors search for underpriced alternatives to gold and silver, platinum's historically low price relative to gold—currently near a 2.4:1 ratio—makes it a compelling contrarian play.
Indigo Precious Metals provides investors with premium platinum bars and coins, along with expert insights and seamless online purchases. Our bullion savings plans allow you to gradually accumulate wealth in physical PGMs—stored securely, fully insured, and outside the banking system.
Final Thoughts: The Time to Act May Be Now
With demand from hybrids and emissions regulations rising, supply declining, and prices near long-term lows, platinum group metals are setting up for what could be a powerful turnaround. This isn’t just a metals story—it’s an opportunity to buy low before the crowd catches on.
As history has shown, these inflection points can lead to outsized returns. If you're looking to diversify your portfolio with real assets that offer industrial relevance, scarcity, and long-term value, now may be the perfect time to invest in platinum.
Visit www.indigopreciousmetals.com to explore our full range of platinum and PGM products and discover how our storage solutions can protect your wealth in turbulent times.