Commodities Supercycle – 5E PGM’s

Hi Peter,

Platinum Group Metals (PGMs) are a family of six precious metals, platinum, palladium, rhodium, ruthenium, iridium and osmium, valued for their unique properties and widespread use in automotive emissions systems, industrial catalysts, electronics and emerging hydrogen technologies.

The PGMs market is increasingly being driven by tight supply, particularly platinum. The precious metal recorded its third consecutive annual deficit in 2025, with global supply falling to a five-year low as constrained South African mine output and weak recycling limit new production. Even record prices briefly above US$2,900/oz failed to trigger a meaningful supply response, highlighting the structural nature of the deficit.

Demand is also evolving. While auto-catalysts remain the largest end market, platinum is benefiting from substitution for palladium and stronger-than-expected ICE and hybrid vehicle production. At the same time, growing demand from hydrogen technologies, industrial catalysts and investment buying, particularly from China, has tightened physical markets, supporting a constructive medium-term outlook for platinum despite a more challenging long-term outlook for palladium.

• Rhodium, like Platinum, is currently primarily used in vehicle catalytic converters to reduce emissions, not required for EV’s!

Ruthenium is used in electronics, data storage and chemical catalysts, iridium in hydrogen electrolysers, spark plugs and aerospace applications, and osmium in niche uses such as medical devices, scientific instruments and highly durable alloys.

Overall, a fascinating group but the reason we didn’t spend too much time on the group is simply the lack of ASX opportunities. For Australian investors wanting pure exposure to rhodium or iridium, there are actually better options offshore, such as Sibanye-Stillwater, Impala Platinum (Implats) and Anglo-American Platinum (Valterra Platinum), which derive a larger share of earnings from the full PGM basket.

However, at this stage with the gold and Platinum price closely correlated we will continue to focus on the easier to invest gold miners but this could change in time.

chart

Platinum Spot ($US/oz) v Gold Spot ($US/oz)

LAST UPDATED 02/07/2026 13:38

Close

chart

Platinum Spot ($US/oz) v Gold Spot ($US/oz)

LAST UPDATED 02/07/2026 13:38