Changes in the price of platinum

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By Jacob Watson


There has been a strong correlation between the price of platinum and that of gold in recent years. Te trends show that an increase in the price of gold has lead to a corresponding rise in that of platinum and also vice versa. This has been noted in the last few years, showing how the price of platinum depends on the gold market. However, the market for platinum is very small, while that of gold and silver is much bigger. Hence, even a small change in the buying and selling scenario could impact the platinum price in a great way.

There is a lot of pressure on the supply side of platinum also which affects the platinum price, but the demand for the metal is the main driver of the price. The global recession has also had a great impact and has changed the demand for platinum as well as other goods. Due to the recession, there has been a lesser demand for platinum, especially in industrial use.

It has been generally noted that many countries have seen a fall in the production of goods using platinum and this naturally leads to the decline in the price of platinum. Platinum is a metal that is mainly used in industry and this field plays a major role in the price changes.

It is known that about 66% of the platinum that is being mined and produced is being used in industry. A decline in this use brings a fall to the price of platinum. This is so especially due to the fall in the auto catalysts market. When the demand for this product came down, the platinum price started getting depressed. This has been offset to a certain extent due to the jewelry market, where platinum is also used. The supply of platinum also seems to have slowed down in the mines.

If people continue to invest in platinum in the form of ETFs and also continue to purchase platinum jewelry, there could be resurgence in the value and the price of platinum. This is expected as there is also a simultaneous shortage in the supply of platinum. Investors can gain from this platinum price and along with them miners who produce the metal will also benefit.




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