The World Platinum Investment Council (WPIC) stated on Wednesday that the global platinum market is expected to see a supply deficit for the fourth consecutive year, with a shortfall reaching 240,000 ounces by 2026. The council had previously anticipated the market to be roughly balanced in 2025, but stronger-than-expected investment demand in the fourth quarter will raise the 2025 market shortfall to 1.1 million ounces, marking the largest scale since 2014.
After a significant 127% rise in 2025, spot platinum prices have increased by 2% this year, hitting a record high of $2,918.80 per ounce on January 26. The primary reasons for the price increase are higher gold prices, tight physical supply, and a structural market shortfall.
The WPIC noted that although global platinum demand is expected to decrease by 8% year-on-year to 7.6 million ounces in 2026, investment demand will grow significantly. Investment demand for platinum bars and coins is anticipated to increase by 45% in 2026, mainly due to last year's 94% growth. Meanwhile, demand from the automotive sector is expected to fall by 3%, and jewelry demand is forecasted to drop by 12%.
The council forecasts that platinum supply will grow by 2% in 2026 due to increased recycling, with total supply expected to reach 7.4 million ounces. Despite this growth in supply, the market deficit will persist, and above-ground inventories (unallocated stock stored in vaults) are predicted to fall by 8%, decreasing to 2.6 million ounces, close to four months of global demand.
The WPIC utilized market data from consulting firm Metals Focus and indicated that despite the supply shortfall, the market will still face certain challenges, especially in the absence of sufficient ETF net inflows and with demand slowing down. The council's members include major global platinum producers.
