Is It Time to Get Bullish on Platinum?
- Thread starter ozcopper
- Start date
Platinum goes through its own supply and demand cycles. The majority of demand comes from catalytic converters for International Combustion engines. It's currently in a supply deficit due to poor mining output - hence the price hike. Palladium is the alternative but switching to Palladium for catalytic converter production will create the same supply deficit causing the price to climb, so they just stick with platinum for now. I think they switched from Platinum to Palladium around 2008, and a few years ago they made the change from Palladium due to the excessive price (over $3000 USD per ounce) to platinum. One could literally trade both metals based on which one is more commonly used at the time and ride the spikes. Soon it will be a good time to buy palladium and sell platinum. The fact that one can be substituted for the other is the exact reason I don't get into either of these metals. That and the demand mainly comes from the automotive industry, so their use is dependant on demand from one sector.
It's funny because silver is in a supply deficit but it doesn't see spikes like Palladium or Platinum. This is because they keep using their aboveground stockpiles to manage the market.
It's funny because silver is in a supply deficit but it doesn't see spikes like Palladium or Platinum. This is because they keep using their aboveground stockpiles to manage the market.
