Core Viewpoint - Platinum has become the latest precious metal experiencing a price surge and heightened market squeeze concerns, with spot contracts trading at a premium over futures, indicating a rush for physical platinum [1] Group 1: Price Movements and Market Dynamics - The London spot platinum price surged by 6.4% to $1,646.03 per ounce, marking the largest intraday increase since 2020 [1] - Platinum spot prices have risen by 60% since May, reaching a 12-year high in October, significantly outperforming gold and silver [1] - The premium of the spot platinum contract over futures reached $53.45 per ounce, up from $28 the previous day, indicating a rare widening price gap [1] Group 2: Supply and Demand Factors - The market is experiencing a rush for physical platinum, similar to the recent silver market squeeze, driven by both institutional and retail investors [2] - Despite a record monthly export of approximately 140,000 ounces of platinum products from China, the liquidity in the platinum market is under pressure [2] - Deutsche Bank's strategy team highlighted that platinum and palladium are likely candidates for tariff actions due to concentrated supply chains and geopolitical risks [3] Group 3: Policy and Regulatory Environment - The U.S. Commerce Secretary's overdue report on critical minerals, which includes platinum and palladium, is expected to assess the impact of imports on national security [3] - Potential trade restrictions could exacerbate existing supply tightness in the platinum market, with leasing rates for platinum group metals currently above normal levels [3] - Platinum's industrial applications, including automotive catalytic converters and chemical processing, underscore its critical role beyond investment and decorative uses [3]