Automobile Sales and Price of Platinum
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All emerging markets are today showing an increasing demand for platinum, resulting in increased price of platinum. This has actually started many years back, with platinum contributing to one-third of the jewelry market today. There has been a tremendous change in people’s attitude towards this metal, resulting in an increase in the prices. Another reason could also be that the gap in the prices of gold and platinum is slowly reducing.
Most people used to formerly consider platinum as too costly a metal for investment purposes or for jewelry purposes. However, now there is a lot of change in this thinking and the price of platinum today is showing a rising trend. People invest in platinum, either as jewelry or for plain investment and it is not just a fashion statement. The really well-informed person is going all out for platinum investment in various countries of the world.
The automobile industry makes use of platinum for the catalytic convertors, which are mainly responsible for reducing carbon emissions. 40 percent of platinum demand is related to this use. Various market influences might affect the current price of platinum today, such as a reduction in the automobile vehicles. However, it is true that carbon emissions must be reduced and to serve this purpose, many automobiles have several catalytic converters, thus contributing to the price of platinum and its demand.
In contrast, it also happens that the demand for the platinum metal might reduce due to the increase in the price of platinum. This happens because the automobile or catalyst producing companies go in for other alternative metals, which are less costly, for instance, palladium. Catalytic convertors can also be produced by palladium, with gasoline motors being made this way, whereas the diesel motors depend more on platinum catalysts. The developing economies make sure that the price of platinum today is on an ever increasing curve.
With the increasing sales of cars today and when this demand in the automobile industry rises, the price of platinum also correspondingly increases. The price is also affected by an increase in the urbanization level. When this sector burgeons, the platinum prices also show a corresponding rise.
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