QUOTE AND NEWS
Financial Times  Jul 22  Comment 
More than ever, miners need a sustained pick-up in auto industry demand
Reuters  Jul 20  Comment 
South Africa's mines minister appealed for calm on Monday after protests around the town of Steelpoort, on the eastern edge of the platinum belt, disrupted mining operations in the area.
newratings.com  Jul 20  Comment 
WASHINGTON (dpa-AFX) - Gold prices continued to plunge Monday morning, extending five-year lows amid speculation the Federal Reserve will hike interest rates by year's end. Fed Chair Janet Yellen told Congress that the economy is improving...
Reuters  Jul 20  Comment 
Tumbling metals prices are delaying Anglo American Platinum's (Amplats) plan to divest its labor-intensive Rustenburg and Union operations, with the South African miner yet...
newratings.com  Jul 20  Comment 
LONDON (dpa-AFX) - Mining giant Anglo American Plc. (AAUKY.PK, AAL.L) said that it will report underlying earnings in respect of Anglo American Platinum Limited of $175 million for the six months ended 30 June 2015, which takes into account...
The Hindu Business Line  Jul 20  Comment 
The yellow metal fell as much as 4% briefly to $1,088.05; platinum, palladium also recover after plunge to multi-year lows
Financial Times  Jul 19  Comment 
London-listed group will miss its own informal deadline to put forward a plan for assets
The Economic Times  Jul 17  Comment 
Australia-based Platinum fund has added Reliance Industries to its portfolio with bullish outlook on downstream projects.




 
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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