One of the key trends I see continuing in 2026 is the outperformance of precious metals like gold and silver. But lost in the shuffle has been platinum, which has typically traded at higher prices than gold in recent decades. Accordingly, my top pick for 2026 is Platinum Group Metals Ltd. (PLG), explains Clif Droke, editor of Cabot Turnaround Letter.
Persistent US currency debasement, geopolitical instability, and a growing desire among investors to hedge exposure to increasingly expensive tech stocks are just some of the reasons for this optimistic view of the precious metals arena. But platinum prices only just recently broke out after underperforming gold in the last few years.
PLG explores for and develops platinum and palladium properties, while also exploring for gold, copper, nickel, and rhodium deposits. The Vancouver-based company primarily operates in South Africa, but also holds mineral rights in Canada.
Along with the broader commodity group known as the platinum group metals (PGM), the company is experiencing something of a turnaround. The platinum market itself is expected to run its third consecutive year of supply deficits for 2025, with an anticipated shortfall of 966,000 ounces. Much of the supply side weakness comes from South Africa, due to operational restructuring, delays, maintenance problems, and some mining shafts nearing end-of-life.
However, platinum end-use demand is increasing worldwide. That includes for the classic automotive sector (which uses the metal for catalytic converters) and the chemicals and synthetic fuel industries. Meanwhile, both jewelry and investment demand for the metal is also rising, notably in China.
As for the company, Platinum Group Metals is losing money...but its losses are shrinking. Of significance, its key Waterberg project in South Africa — with a measured and indicated resource of 33.8 million ounces and projected annual production of 350,000 ounces of platinum, palladium, gold, and rhodium — is being advanced, with an updated feasibility study recently released.
The company also recently entered an arrangement with Ajlan & Bros. and Saudi Arabia’s Ministry of Investment for a smelter and base metal refinery in Saudi Arabia. That could help with processing downstream and mitigate some its dependency on external processing.
Recommended Action: Buy PLG.
