Platinum In Freefall; Will It Last?
(Kitco News) - Platinum plunged on Monday, falling 3% on the day andhitting the lowest level in ten years.
The metal’s spot price on Kitco.com was last seen trading at$805 an ounce, down 3% on the day, as of 3:00 pm EST.The base metal has been falling steadily in 2018, downnearly 20% from $1,000 an ouncein January, amid supply surplus and fears that a global trade war would dampendemand as economic growth takes a hit.
Platinum, as an industrial metal, is an important componentto the automotive industry due to its use in catalytic converters.
Some analysts have speculated that its long-term demand willcontinue to stay under pressure as the electrification of cars will nullify theneed for emissions-cutting catalytic converters.
In an interview with Kitco News at the IPMI Precious MetalsMobility Symposium in April, Jeffrey Christian, managing partner at CPM Group,anticipated a supply glut for platinum-group metals (PGMs) from the emergenceof electric vehicles.
“In a long, long-term perspective, precious metals,platinum, palladium, and rhodium, have real risks of finding that the future ofautomotive technology obviates the need for PGMs,” Christian said.
He noted, however, that the shift to an electric car economywill take several decades, and so the risks to PGMs will only be significantover the long-term.
As more electric vehicles hit the roads, analysts predictthat battery-related metals, such as copper and tin, would take platinum’splace and rally over the long-term.
Contrary to platinum, copper spot prices traded flat Monday,down 13 cents to $2.76 a pound.
By David LinFor Kitco News
Follow @davidlinMTL
dlin@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.