Platinum prices could strengthen as the market experiences a growing disparity between supply and increased global demand in autocatalyts, jewelry and exchange traded fund investments.
Johnson Matthey, a precious metals refiner, estimates that gross demand for platinum could hit a record 8.42 million ounces this year, or up 4.8% year-over-year, due to strong industrial and South African investment demand, reports Neil Hume for Financial Times.
Platinum is primarily used in catalytic converters to reduce harmful emissions from combustible engines and is also used in jewelry.
Alison Cowley, principal market analyst at JM, points out that sales in Europe could rise due to new diesel emissions standards. Additionally, the emerging middle class in China could also fuel demand.
“The conditions are in place for further growth in the Chinese market,” Cowley said in the article. [China’s Desire for Bling Could Lift Platinum ETF]