Boom year ahead for platinum
Wednesday, 13 January 2010
NEW YORK, Jan 12 (Commodity Online): Last week saw a major move taking place in the platinum group metals sector with the launch of platinum and palladium-backed exchange-traded funds (ETFs) on New York.
With the launch of the ETFs in US, investors have got yet another option to put their money and year 2010 is expected to be the year of the white metal.
Platinum is the best known of the six platinum group metals (PGMs). About half of the global demand for platinum comes from the autocatalyst sector, as the metal is a critical component of catalytic converters for automobiles. Other industrial demand comes from chemical, electrical, glass, and petroleum applications. Jewellery also accounts for a significant portion of platinum demand.
About 60 per cent of global platinum supplies come from South Africa, with Russia, Canada, and the US among the other major platinum-producing regions. Following a spike in prices earlier this decade, recovery of platinum from scrapped automobiles has become an increasingly popular practice. Supplies derived from autocatalyst recycling increased from 420,000 ounces in 1999 to more than 1.1 million ounces in 2008.
The possible uses for platinum in a portfolio are numerous. As a precious metal, PPTL could potentially provide protection against inflation or act as a safe haven investment in uncertain economic environments.
With the launch of the ETFs in US, investors have got yet another option to put their money and year 2010 is expected to be the year of the white metal.
Platinum is the best known of the six platinum group metals (PGMs). About half of the global demand for platinum comes from the autocatalyst sector, as the metal is a critical component of catalytic converters for automobiles. Other industrial demand comes from chemical, electrical, glass, and petroleum applications. Jewellery also accounts for a significant portion of platinum demand.
About 60 per cent of global platinum supplies come from South Africa, with Russia, Canada, and the US among the other major platinum-producing regions. Following a spike in prices earlier this decade, recovery of platinum from scrapped automobiles has become an increasingly popular practice. Supplies derived from autocatalyst recycling increased from 420,000 ounces in 1999 to more than 1.1 million ounces in 2008.
The possible uses for platinum in a portfolio are numerous. As a precious metal, PPTL could potentially provide protection against inflation or act as a safe haven investment in uncertain economic environments.