QUOTE AND NEWS
The Economic Times  Sep 27  Comment 
 An interpretation of modern day values, EVARA collection is perfect gift for the newlywed couple and bless them with a token of pure love.
The Hindu Business Line  Sep 26  Comment 
Prime Minister Narendra Modi on Monday stressed on the need for using technology to help farmers double their income by 2022. Modi was inaugurating the Platinum Jubilee Celebrations of the Council of...
Forbes  Sep 23  Comment 
With a new album promised by month's end, the multifaceted hip-hop artist continues to rack up sales awards for his 2009 breakthrough album.
Forbes  Sep 18  Comment 
The Platinum Games developed Nier: Automata, which continues on the extended narrative from the Drakengard series, will be released in Japan this coming February.
The Economic Times  Sep 13  Comment 
The advanced versions of the new Platinum Etios will be priced higher by Rs 10,000-22,000 as compared to the older versions.
Financial Times  Sep 8  Comment 
Slowdown in mining and recycling of precious metal could help support price rally
Forbes  Sep 8  Comment 
With industrial action in South Africa back in the news again, could metal prices be about to shoot higher?




 
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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