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Mineweb reported that platinum prices are poised to rebound from a five-year low due to shrinking platinum stockpiles, rising demand from car manufacturers and new uses of platinum being charted out in the energy field.
Mineweb reported that platinum prices are poised to rebound from a five-year low due to shrinking platinum stockpiles, rising demand from car manufacturers and new uses of platinum being charted out in the energy field.
As quoted in the market news:
Production of the shiny metal, used for jewelry and in catalytic converters in cars, will fall short of consumption this year by about 500,000 ounces, according to a January estimate by Credit Suisse Group AG. Given that, industry leaders are debating how long it will take for buyers to use up reserves and start paying more for a less available product.
One of the main drivers for demand is the automotive market. Platinum and related metals such as palladium and rhodium are used in catalytic converters because they trigger chemical reactions that break down carbon monoxide and other gases into other compounds, reducing harmful tailpipe emissions by more than 90 percent.