Platinum…

Platinum is a beautiful silvery-white metal. It is seen as an attractive investment vehicle and as a good way of hedging assets against inflation. This attraction for Platinum investment is spreading worldwide and is based on Platinum relative scarcity, its historical price performance and unique fundamentals. Investing in Platinum may be done in futures and options or in bars, ingots and bullion coins like the American eagle, the Australian Koala or the Canadian Maple Leaf among others.

Platinum is primarily an industrial metal. It is a critical material for many industries and is considered a “strategic metal” by the US Government as a military resource. It is very heavier metal and more expensive then Gold. Total demand for platinum falls into eight broad categories:

1. Automotive – used in catalytic converters, spark plugs, and sensors.
2. Jewellery – as a substitute for Gold.
3. Chemical processing – also as a general catalyst.
4. Electrical/electronics – for high-temperature and non-corrosive wires and contacts.
5. Glass – dies and process technology
6. Petroleum refining – as a catalyst for crude oil cracking.
7. Dental/Medical – equipment and reconstructive surgery.
8. Investment – bullion and coins.

Multi-Commodity Exchange, India’s top commodity platform in terms of turnover, has launched future trading in Platinum from 20.06.08. At present, Platinum is most traded in overseas commodity markets such as the New York Commodity Exchange and the Tokyo Commodity Exchange in Japan. In MCX contract is having market lot size of 500 gm and the price quote is in rupees per 10 gm ex-Mumbai.

India is the world’s biggest gold consumer importing over 700 tonnes of gold a year, but Platinum finds only small shelves in jewellery shops owing to its high price. According to MCX, India’s Platinum demand in the current fiscal year is estimated at 932 kg and is likely to grow at 10 percent each year.

In 2007, global supplies of 6.55 million ounces were more than matched by demand of 7.03 million ounces. In 2006, world supply of Platinum was of about 217,700 kg or 7 million troy ounces.

Since 2001 Platinum has been mountain in international market. It touches its lifetime high on dated 4th march 2008 @ 2299 Dollars and cents per troy ounce.

Major Producing Countries: South Africa, Russia, Japan
Major Consumer of Platinum: Europe, Japan, North America.

Weekly Chart of Platinum (NYMEX)