Bloomberg reported prices of platinum and palladium are expected to jump on increased car sales in the U.S.
Articles Tagged "auto sales"
The perfect storm has hit platinum in the wake of the Japanese earthquake and geopolitical events in the Middle East and North Africa regions. The impact of these events are specific to the platinum market in one regard: automotive demand. Nearly 40 percent of total platinum demand comes from the auto industry.
Higher platinum prices are encouraging some in the catalytic converter industry to turn to palladium as a cheaper alternative, but increasing worldwide auto demand, especially for cleaner vehicles, will continue to drive platinum prices higher.
Platinum prices made gains on Tuesday, climbing to $1,525 per ounce after opening July at $1,500. The metal is up 5 percent since closing out 2009, an impressive feat given the lingering fears that the European debt crisis could still trigger a double-dip recession.