Platinum Prices Down But it has its supporters Longer Term

Platinum Prices Down But it has its supporters Longer Term


Welcome to illuminati silver, we tell you
the truth about silver. Today is Monday 23rd November 2015 and we
are providing an update on Platinum and mentioning two of its major supporters.
Mining entrepreneur Robert Friedland is bullish on Platinum Group metals long term, despite
platinum prices having been under pressure this year, and the recent Volkswagen emissions
scandal exacerbating matters further. Now, we have to bear in mind that Mr Friedland
has vested interests being the Executive Chairman and Director of Ivanhoe Mines, nevertheless
his experience and reputation in the industry is well known.
The two main reasons for his bullishness are: 1. Urbanization and air pollution
As more and more people migrate to cities, air pollution will increase substantially
an example being air pollution hitting life-threatening levels in Paris in March 2014.
That’s important for platinum as “platinum-group metals are absolutely critical to having cleaner
air” due to their role in catalytic converters for vehicles and in other emissions-reducing
applications. Platinum and its sister metal palladium are
widely used in catalytic converters that reduce harmful emissions from automobiles. Platinum
is used in converters for diesel engines, while palladium is used for engines that run
on gasoline. Although diesel car sales have been on a downward
trend, as a result of recent revelations that Volkswagen has been cheating on its emissions
tests, Friedland counters this by noting that China is imposing standards to remove sulphur
from diesel and gasoline, and removing that excess sulphur could allow the “90 million
cars clogging the roads in China” to be retrofitted with catalytic converters.
2. Hydrogen fuel cells Friedland also sees vehicles which run on
hydrogen fuel cells becoming additional scope for Platinum demand-believing that ‘fuel
cell technology is the way of the future’. With fuel cells requiring 8 – 12 times as
much platinum as is required in catalytic converters he sees the longer term demand
for this PGM to rise significantly. In addition, fuel cell technology is becoming
more and more important in Japan, where fuel cells are also being built for home use.
Another fan of Platinum is Johnson Matthey Plc which sees platinum usage growing, and
recycling rising. It predicts that Platinum demand will probably beat supply for a fifth
year in 2016 on more industrial usage, even as recycling rebounds. It states in a recent
Report “Automakers will buy more platinum to use in devices that curb harmful emissions
from vehicles, though the growth rate will be slower than in the last two years”. It
further added that “while slumping platinum and steel prices have reduced the incentive
to scrap older cars this year, there may be a “double-digit” increase in the amount
of metal recycled from vehicles in 2016. It says “There is little prospect of material
growth in primary platinum supplies in 2016.” The recent PGM sell-off is mainly being blamed
on investors liquidating their holdings in physically backed exchange traded funds. The
launch of two popular physically-backed palladium ETFs in Johannesburg in March last year gave
an additional boost to palladium and platinum already boosted by the crippling strike in
South Africa. Now it appears South African investors have lost confidence since August
of this year. Ole Hansen, head of commodity strategy at
Saxo Bank points out that both platinum and palladium are small markets and such a massive
exodus within a short space of time can exaggerate price declines of the underlying metal.
So what does this all mean? Well frankly its suggesting that short term, PGMs are likely
to go in the same direction as other metals namely lower. However longer term, there is
a strong fundamental case for Platinum. When we first reported on it on 26th July the price
stood at $987 oz and today its standing at $846 a far cry from its 2015 peak of $1283
back in January. We hope you have found this video helpful
and informative, and would appreciate it if you would give it a thumb up, comment and
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follow us at illuminatisilv1. Disclaimer: Silver Illuminati owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

12 Comments

  1. I'm first again ?  Platinum It sure has come down as well as palladium . Palladium is down what $21 today. I think I'll watch this from the sidelines.

  2. I think all this talk of a surge in demand of Platinum is premature. Oil, the Dollar, and Gold will do more to affect price of PMs over the next several years, depending on what the Republicans do (economics wise) once they take the Presidency.

  3. thanks IS I have been buying bars and looking at coins as well I just can't help but think that we are so close to 08 lows it is less than gold this won't last forever it makes sense to me but you know that……thank you for the closer look

  4. Would you recommend buying platinum in the UK where it has 20% VAT or does it mean it would have limited investment potential considering you still have CGT and premiums on the bullion like Silver?

  5. I think it's interesting that the comments for "industrial use for platinum is bullish"…then why is the industrial use of silver so bearish?

  6. Just watched this video and the Platinum video of September 27, 2015. Another great call! Question for you. Do you think the dip in Palladium is worth buying?

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