“The metal is outperforming the wider Bloomberg Commodities Index as concern about the political tension between Russia and America grows. It’s a respite for platinum amid longer-term declines, with consumers turning away from the diesel engines that use the metal to filter fumes,” according to Bloomberg.
Another positive and important catalyst for platinum is that more of the metal is expected to be consumed this year compared to how much producers are able to mine, meaning demand will outpace supply.
Over the long-term, platinum and palladium could face slowing demand as electric vehicles become more affordable and accessible to larger numbers of buyers.
“Take-up of electric cars may prove more devastating for platinum group metals demand than digital photography was for silver, Bodo Albrecht, chair of the International Precious Metals Institute, told the Reuters Global Gold Forum,” reported Reuters last month.
PPLT is down 17.1% over the past year, more than double the loss of the comparable gold ETFs over the same period.
For more news on Precious Metals ETFs, visit our Precious Metals category.