Could platinum be the precious metal to back in 2012?
Could platinum be the precious metal to back in 2012? Prices have plunged recently and it is now cheaper than gold.
Indeed, the platinum spot price has slumped by 26pc since its high in August and it briefly fell below $1,500 a troy ounce last week.
“For the very first time, a troy ounce of gold now costs over $200 more than a troy ounce of platinum,” Commerzbank analysts led by Carsten Fritsch, said.
“The price difference between gold and platinum has been widening in favour of gold since early September… We do not view this discrepancy as sustainable because it could bring about a shift in jewellery demand towards less expensive platinum.”
The platinum price is at a 26-year low relative to the dollar. The metal is not only used in jewellery but is an important component in catalytic converters in vehicles and other industrial processes.
European car sales are very important for the platinum price, where a significant proportion of diesel cars are sold, which use more platinum in emissions control systems. However, these fears could be overcooked.
Morgan Stanley reckons that 17pc more platinum could be used in vehicle making next year at 3.82m tonnes the highest since 2007. There is also likely to be demand from investors in the form of back exchange traded funds (ETFs), particularly after such a large price fall...
Source: https://igoldprice.net/could-platinum-be-the-precious-metal-to-back-in-2012/
