Why does the platinum future performs not as good as the gold future? It seems, it has lost its correlation.
The platinum future has often underperformed compared to gold due to several factors:
1. Industrial Demand vs. Safe-Haven Asset
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Gold is a safe-haven asset, rising in uncertain times.
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Platinum depends on industrial demand (e.g., automotive, jewelry), which drops in weak economies.
2. Substitution by Palladium
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Used in catalytic converters, but increasingly replaced by palladium (cheaper, more efficient).
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This reduces platinum’s industrial demand.
3. Supply & Production
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Mined mainly in South Africa & Russia; supply issues can affect prices.
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Gold has a broader mining network and steady central bank demand.
4. Speculative Demand & ETFs
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Gold attracts central banks & ETFs; platinum has lower investor interest.
Conclusion:
Gold thrives in uncertainty and crisis, while platinum relies on industrial use and faces substitution.
