Platinum Hits Five-Year Low Admist European Growth Concern

Platinum has dropped to lows not seen for five years on signs that demand from Europe and its car industry is faltering.

According to Bloomberg:

Prices retreated 12 percent in three months through yesterday, the biggest quarterly loss in more than a year, amid signs of slowing economic growth in Europe. The region accounts for 25 percent of global demand. Holdings in exchange-traded products backed by the metal are near a four-month low, while money managers cut their bullish wagers for three straight weeks, the longest streak this year.

Mike McGlone, research director at ETF Securities US, said:

It’s been a double-whammy negative, most notably because platinum is used in diesel vehicles, and the biggest diesel-auto market is in Europe. Europe recession fears are high, meaning potentially less direct demand.

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