Gold is our favorite metal but platinum comes in as a close second. What is going on with platinum these days? Usually trading at roughly the same as gold, platinum has taken a nose dive. But still some major players are betting on platinum…
The platinum industry is suffering with producers cutting jobs and at $400 a troy ounce below gold, showing the largest gap ever between the metals.
To understand why, you should know platinum is a precious metal that has many industrial uses in addition to it’s application in jewelry. It is used for the dental, electronic, and medical industries in a variety of products. In the automotive business it is used to make catalytic converters and this is, in part the reason for the plummeting price. Threats of automotive tariffs are intensifying tensions and really shaking up the precious metals market. A tariff on European made automobiles would stifle imports and would lower the amount of platinum needed for the diesel engines thus limiting the platinum demand.
So should you buy?
In our industry we always say metals prices take the stairs up and the elevator down. We’re taking the stairs on this one.
For more info on platinum today – check out WSJ – Source: Wall Street Journal July 5, 2018 B12 Platinum Sinks.
Get your precious metals in for refining and get ready to trade: