QUOTE AND NEWS
SeekingAlpha  Oct 17  Comment 
By Steve Evans: Platinum Underwriters Holdings (NYSE:PTP) is the first of the reinsurance firms to announce its third-quarter 2014 earnings and there appears to be little change to its strategy of adapting to soft market conditions by pulling...
Market Intelligence Center  Oct 16  Comment 
The spread between the prices of gold and platinum has been narrowing in recent weeks. Today, the two have switched places and back several times at about the $1,240 level. To put this in the simplest terms possible, there appears to be a pattern...
Forbes  Oct 16  Comment 
We are now nine and a half months into 2014, and the sales numbers for the music industry are looking particularly grim. While the fourth quarter is typically when the most sales occur, things have never been quite so bad.
Mondo Visione  Oct 16  Comment 
The London Metal Exchange (LME) today announces its appointment by the London Platinum and Palladium Fixing Company Limited (LPPFCL) to be the new provider of London Platinum and Palladium Prices. The LME’s custom-built electronic solution,...
newratings.com  Oct 15  Comment 
LONDON (dpa-AFX) - Aquarius Platinum Ltd (AQP.L) said that on Tuesday it had been advised by a Consortium that it had decided not to again extend the outside date, as a result of which, the agreement terminated on Tuesday. On 30 January 2014,...
Automotive World  Oct 14  Comment 
For FCVs to enter the mainstream, the platinum catalyst will need to be replaced with a cheaper material. Scientists at Rice University may have the solution The post New material outperforms platinum as fuel cell catalyst appeared first on...
Clusterstock  Oct 14  Comment 
By Ed Stoddard RUSTENBURG South Africa (Reuters) - For decades, production in South Africa's platinum mines has rested on the muscular shoulders of men risking life and limb to drill into the rock face with jackhammers. Three years of labor...




 
TOP CONTRIBUTORS


Platinum is an exceedingly rare, silvery-white precious metal used in jewelry making, electronics components and various industrial applications. About half of all global platinum consumption is for the manufacture of automobile catalytic converters. [1]

Platinum is exceedingly rare (about 30 times rarer than gold) and found in only a few deposits worldwide. The largest known primary reserves are in South Africa's Bushweld complex, followed by deposits near Norilsk, Russia and the Sudbury Basin, Canada.

The chart at left shows continuos front-month futures prices for Platinum traded on the New York Mercantile Exchange.

Prices, Tickers, and Delivery Dates

Platinum futures contracts are traded on the New York Mercantile Exchange under ticker symbol PL and are delivered every year in January, April, July, October, November, and December. (For more information on commodity tickers, check out the commodity ticker construction page.)

What Impacts the Price of Platinum?

Because so much of the platinum's demand stems from car manufacturers, downturns in the auto industry can significantly affect the metal's price. During the market meltdown in 2008, for example, platinum prices fell 65% from their peak, driven downward in part by faltering car sales worldwide.

In addition, in 2008 platinum experienced a surplus that is expected to continue well into 2009, and perhaps even 2010. This oversupply has also negatively impacted platinum prices.

However, in early 2009, platinum started to regain its strength. As investors returned to the metal, seeking a safe haven, holdings of ETF Securities's Physical Platinum ETF (LSE: PHPT.L) rose 87% over the first quarter of the year.[2]

In April 2009, ETF Securities announced it would launch a bullion-backed platinum ETF in the U.S.[3] (a similar ETF already exists for European investors), which led some to speculate that hoarding bullion for the ETF could cause shortages and drive up prices.[4] Similar concerns were raised about the launch of ETFS's first platinum ETF back in 2007, but the fund's impact on the market was hard to discern at the time, due to roving blackouts in South Africa that had disrupted supply.[5]

References

  1. Bloomberg - Platinum, Palladium Fall as Slumping Auto Sales Erode Demand.
  2. Reuters - ETF Securities' platinum holdings jump in Q1.
  3. Index Universe - ETFS Files for Palladium and Platinum ETFs.
  4. WSJ - Platinum's Outlook Isn't Gold-Plated.
  5. HAI - Platinum Supplies Hoarded By ETF.
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