Shiny metals are all the rage this year, with gold and silver on a tear. So it might be tempting to see platinum’s revival — the metal is up almost 80 per cent since January — as the result of spillover demand from investors seeking a hedge against currency debasement. But while platinum has in the past been viewed as a store of value, it is now best understood as a hedge against the slowing energy transition. 

Line chart of Day close price, rebased showing Motoring ahead

That’s because the automotive sector currently accounts for almost 40 per cent of platinum consumption. The metal is used in catalytic converters, which turn noxious exhaust fumes into less noxious substances. That huge source of demand was pencilled to decline to roughly zero over time, as fumeless electric vehicles took over from traditional internal combustion engines. Now, forecasters are busily revising their estimates up.