QUOTE AND NEWS
Bloomberg  10 hrs ago  Comment 
With platinum prices at a five-year low, Anglo American Platinum Ltd. is seeking to boost demand for the metal with systems that produce electricity in remote areas.
Resource Investor  Nov 14  Comment 
Gold and silver futures fell, while platinum reached a five-year low, as slumping oil prices cut demand for an inflation hedge and the dollar strengthened.
Motley Fool  Nov 13  Comment 
Obamacare's tiered plans might appear straightforward, but in order to truly understand which plan is right for you, you first have to understand the advantages and disadvantages they offer.
The Hindu Business Line  Nov 11  Comment 
Breaking the gold hold, Gen-Next increasingly opts for the precious metal
Benzinga  Nov 11  Comment 
Navidea Biopharmaceuticals, Inc. (NYSE MKT: NAVB) today announced it has received a $1.1 million refund of the previously paid Prescription Drug User Fee Act (PDUFA) filing fee related to the granting of orphan drug status of Lymphoseek®...
MarketWatch  Nov 10  Comment 
People don’t enjoy shopping for dad, and some platinum cards might not be worth the annual fee.
The Hindu Business Line  Nov 6  Comment 
When it comes to luxury watches, the Indian consumer will experiment with material and movement
guardian.co.uk  Nov 6  Comment 
In just seven days, this year’s first platinum artist shifted more copies of 1989 than the combined sales of albums at No 2 to No 107 in Billboard chart Is 2014 the year the platinum album dies? We read every Taylor Swift thinkpiece so you...




 
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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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