Platinum Crunch Comes to a Head as US and China Snap Up Metal

A years-long supply crunch in platinum has come to a head, with banks scrambling for dwindling stocks in London as buyers in China and the US hoover up much of the available metal.

The market tightness has made platinum one of the best-performing commodities this year and fueled sky-high borrowing costs for the precious metal. Tariff fears have funneled large volumes to US warehouses, while Chinese imports continue to exceed estimated domestic consumption.

The upshot is a shortfall in the trading hubs of London and Zurich, pushing traders to guard supplies. Industry experts broadly agree on where the metal has ...