By observing the trend in the price of platinum, you can see that recently gold and platinum prices have been correlated. This is seen as the price of platinum rose along with that of gold and also fell down when the price of gold came down for the past few years. This shows how the price of platinum also depends on the gold market to a certain extent. The market for the buying and selling of platinum is much smaller, especially when compared to gold and silver. A small change in the purchase or sale will bring about dramatic impact on the platinum price.
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.
Many countries have seen a reduction in the production and use of platinum and the number of goods being manufactured with platinum has come down. This results in a fall in the price of platinum. The demand for platinum is mainly in the industrial field and such factors immediately affect the price.
About 66% of platinum is used in industry and so the recession has affected the price of platinum in a negative way. It is mostly used in auto catalysts and the demand for this having reduced, the prices have come down. Of course, there is also the jewelry market in case of platinum and this helps to stabilize the prices. There is also a decline in the production of platinum as the mining being done has slowed down.
If the market for platinum improves with increased investment in ETFs as also in platinum jewelry, there could be a sudden surge in the price of platinum. This should be considered in combination with a reduction in the supply, which will result in the prices rising. This will bring about a profit to investors, as also to miners who produce this metal.
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.
Many countries have seen a reduction in the production and use of platinum and the number of goods being manufactured with platinum has come down. This results in a fall in the price of platinum. The demand for platinum is mainly in the industrial field and such factors immediately affect the price.
About 66% of platinum is used in industry and so the recession has affected the price of platinum in a negative way. It is mostly used in auto catalysts and the demand for this having reduced, the prices have come down. Of course, there is also the jewelry market in case of platinum and this helps to stabilize the prices. There is also a decline in the production of platinum as the mining being done has slowed down.
If the market for platinum improves with increased investment in ETFs as also in platinum jewelry, there could be a sudden surge in the price of platinum. This should be considered in combination with a reduction in the supply, which will result in the prices rising. This will bring about a profit to investors, as also to miners who produce this metal.
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