“Underlying demand for the PGMs [platinum group of metals]remains relatively healthy, while concerns over supply have been sidelined,” Barclays Capital analyst Suki Cooper said in a Dow Jones Newswires report Wednesday.
“More than 30% of platinum demand is driven by its autocatalyst applications. The auto sector destocking and industry projections predict increased automotive production going forward, which could place upward pressure on platinum prices,” notes Morningstar analyst Abraham Bailin. “While most investors regard platinum as a precious metal, its industrial applications lay it victim to economic trends. A double-dip global economic recession could place severe downward pressure on platinum prices.”
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Tisha Guerrero contributed to this article.