While gold and palladium have seen their value rise sharply in the past year, platinum has so far remained in the shadow of interest. It was only in recent weeks that platinum increased above $1,000 per troy ounce.
The price of platinum has risen more than twenty percent over the past month, above $1,300 an ounce. With some delay, the value of this metal began to follow the trend of gold and palladium, which have seen a sharper increase in the past year. Investors’ belief that demand for platinum will increase in the coming weeks and months is behind the awakening of interest in platinum.
According to analysts, the lack of platinum in the market will begin to show in a relatively short time. Platinum is an important metal for the automotive industry. It serves as an element that neutralizes harmful emissions from internal combustion engines. So far, car manufacturers have preferred palladium and rhodium, but the rise in their prices has prompted them to look for a more cheap substitute.
Investors expect palladium demand to fall by about eight percent by the end of next year, while platinum will rise by at least a tenth. Automakers should replace about 800,000 ounces of palladium with platinum. Platinum is also used as part of hydrogen fuel cells, which are also used in the automotive industry.