Author Topic: Platinum  (Read 182 times)


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« on: January 07, 2020, 09:09:48 AM »
Historically, platinum has had a higher value than gold but in recent years has fallen out of favour.
If we look back to just before the economic crisis in 2008, platinum was trading at $2, 000 an ounce and gold $600. By 2012 golds safe haven status had seen it rise to $1700, while platinum had slipped to $1900. In early 2019 gold had dropped to $1300 but platinum had more than halved to $800. Currently gold is sitting at around $1550 and platinum $1000.
A large part of the reason for this change in positions was the Volkswagen emissions cheating scandal a few years ago. This,  together with the move towards electric and hybrid cars,  has greatly reduced demand for diesel cars and with it platinum, which is used in diesel car autocatalysts.
A lot of platinum comes from South Africa, which is now  ruled by a party keen on land grabbing and asset claiming.  During 2019 many S.A. platinum mines closed down and in the current political climate new mines are not being opened to replace these, and there are already the first signs of under supply.
While platinum may never recover to its former position of being up to twice as expensive as gold,  I feel it may have bottomed out and may well make up a lot of the current gap. Certainly,  I feel there is more room for growth in platinum prices than in gold over the next couple of years and this is something I will be keeping my eye on.

« Last Edit: January 07, 2020, 09:16:17 AM by eddieb »
Disclaimer. Posts are just my thoughts,  not recommendations.  Do your own due diligence before trading