Global platinum prices will be growing in the second half of the current year, due to ever recovering global demand and the growth of international economics, according to latest forecasts, made by some leading global analysts in the field of metals and mining and some media reports.
Platinum is widely used in the automotive industry, chemical industry, electronics, oil and gas industry and jewelry. The jewelry industry accounts about 30% of the total demand for metal, while 40% comes from the demand from automotive sector. A few years ago, platinum was the most expensive precious metal in the world, however in recent years the situation has changed dramatically, as the pandemic has led to a significant drop of demand for it.
The ongoing spread of new, more aggressive strains of the coronavirus throughout the world negatively affects platinum prices. In addition, lately, there have been some messages from the US Federal Reserve about its plans to scrap a program for monetary stimulus due to high inflation in the United States.
Still, despite this, most of analysts believe prices for the metal may resume their active growth already in the short term. That will primarily depend on the further development of the global automotive industry, as the supply is limited, taking into account that the metal is mined mainly in South Africa, which continues to suffer from a pandemic and insufficient vaccination).
Compared to 2020, the demand for platinum in the automotive industry in 2021 increased by 557,000 ounces, in the industrial segment - by 486,000 ounces, and in the jewelry segment - by 158,000 ounces.
By: Eugen Gerden