Commodities, Rates, and the Repricing of Scarcity
A deep dive with Will Rhind on platinum’s resurgence, gold’s strength, and what it means for portfolio construction.
In this episode of Lead-Lag Live, I sat down with Will Rhind, Founder and CEO of GraniteShares, for a timely conversation on precious metals, commodities, ETF structure, and what may be unfolding beneath the surface of today’s market narrative.
We covered platinum’s surge, gold’s breakout, structural supply deficits, China’s role in the commodity complex, and how advisors are thinking about portfolio construction in a world where hard assets are back in focus.
Below are the key takeaways.
Platinum: From ESG Casualty to Structural Deficit
Platinum has quietly become one of the most compelling stories in the commodity complex.
The fundamental backdrop is straightforward: demand is exceeding supply.
Unlike many other commodities, platinum is operating in a structural deficit. Years of underinvestment in mining capacity, coupled with supply concentration in South Africa and Russia, have created a fragile production base.
Why the underinvestment?
Peak ESG policy assumptions.
Following Dieselgate and aggressive electric vehicle mandates, the narrative became that internal combustion engines were headed toward extinction. Platinum — heavily used in catalytic converters — was viewed as collateral damage in the “all EV” transition.
That thesis has since moderated.
EV adoption has not eliminated ICE demand. Government subsidies have shifted. Reindustrialization is underway. The timeline for phasing out combustion engines has stretched.
Meanwhile, the mines were never built.
Lower prices discouraged capital investment. Production constraints compounded supply fragility. Power disruptions and labor issues in South Africa further tightened the market.
Now demand exceeds available supply — and price is adjusting.
Gold at Highs — Yet Still Underowned?
Gold has pushed to fresh highs, reinforcing the global bid for hard assets.
Yet, as Rhind pointed out, gold still is not embedded in the standard 60/40 allocation framework.
That matters.
If gold were structurally embedded alongside equities and bonds, ownership levels would look materially different. Instead, it remains underrepresented in traditional portfolios.
Historically, gold was dismissed as “dead money” because it does not produce yield.
Now we have yield — and demand for gold remains strong.
The drivers are familiar:
Rising global debt burdens
Currency debasement concerns
Geopolitical fragmentation
Central bank accumulation
Gold is not just a trade. It is monetary insurance.
Platinum, while not held by central banks, shares several attributes with gold — scarcity, store-of-value characteristics, jewelry demand — with the added dimension of industrial utility.
The Platinum–Gold Ratio: A Useful Framework
For decades, platinum traded at a premium to gold — so entrenched that “platinum” became synonymous with superior value.
Over the past decade, that relationship inverted.
Today, platinum trades at a discount to gold. The historical gold-to-platinum ratio has swung widely across cycles, suggesting that relative valuation remains a meaningful lens for long-term investors.
Normalization is not guaranteed.
But the setup is structurally different than it was during the peak ESG narrative.
China and the Demand for Hard Assets
China plays a central role.
At the macro level, China competes for access to strategic resources. At the micro level, Chinese investors face capital controls and a limited domestic investment menu.
When real estate weakens and currency pressures rise, the incentive to hold tangible assets increases.
In periods of uncertainty, gold — and increasingly other precious metals — becomes a store-of-value alternative.
Demand often accelerates precisely when economic confidence fades.
Physical Exposure vs. Mining Equities
We also discussed structure.
Owning physical-backed ETFs such as GraniteShares Platinum Trust (PLTM) provides direct exposure to the spot price of platinum, backed by vaulted physical holdings.
That is a precision investment.
Mining equities introduce operational risk, cost inflation, management execution risk, and energy exposure.
In theory, miners provide leverage to rising metal prices. In practice, input cost inflation — particularly energy and labor — can compress margins during commodity bull cycles.
Exposure choice depends on the objective.
Broad Commodities Without K-1s
For diversified exposure, we discussed GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB).
COMB tracks the Bloomberg Commodity Index, offering diversified exposure across energy, agriculture, industrial metals, and precious metals.
Importantly, it avoids K-1 tax reporting — historically a deterrent for many investors in commodity partnerships.
In an environment defined by reindustrialization and resource competition, broad commodity exposure may warrant reconsideration.
Managing Volatility
Commodities are volatile. Precious metals are no exception.
For many advisors, metals represent a modest allocation designed to hedge systemic risk rather than generate income.
Gold’s long-term negative correlation to equities supports its diversification role.
Some overlay options strategies — covered calls for yield enhancement or protective puts for downside mitigation — particularly within liquid ETF structures.
Allocation size and portfolio context matter.
Bottom Line
Platinum’s resurgence reflects more than momentum.
It reflects:
Structural supply deficits
Reversal of peak ESG assumptions
Reindustrialization
Dollar and rate dynamics
Global demand for hard assets
Gold is making headlines. Silver is participating. Platinum is re-entering the conversation.
Hard assets are no longer fringe.
They are part of the macro discussion again.
If you missed the live session, the replay is available above.
Lead-Lag Live remains focused on exploring macro inflection points, market structure shifts, and investment vehicles that deserve attention before consensus catches up.
DISCLAIMER – PLEASE READ: This is a sponsored episode for which Lead-Lag Publishing, LLC has been paid a fee. Lead-Lag Publishing, LLC does not guarantee the accuracy or completeness of the information provided in the episode or make any representation as to its quality. All statements and expressions provided in this episode are the sole opinion of GraniteShares and Lead-Lag Publishing, LLC expressly disclaims any responsibility for action taken in connection with the information provided in the discussion. The content in this program is for informational purposes only. You should not construe any information or other material as investment, financial, tax, or other advice. The views expressed by the participants are solely their own. A participant may have taken or recommended any investment position discussed, but may close such position or alter its recommendation at any time without notice. Nothing contained in this program constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in any jurisdiction. Please consult your own investment or financial advisor for advice related to all investment decisions.