Platinum and Platinum Group Metals

This chapter focuses on the growing use and demand of platinum and platinum group metals. With the beachhead established, platinum demand could grow considerably in years to come. However, its uses as a modern industrial metal are key to platinum, and prime among these is its use in auto catalytic converters, which uses about 60% of all platinum produced. It is thus extremely exposed to the auto market, and the platinum price has tracked global auto sales very closely. Certainly, platinum looks attractive with enormous potential. Notwithstanding the problem of few producers and few major consumers, the demand for platinum is likely to increase in coming years, with the growth of the auto market in China and with growing investor interest. The demand dynamics from China and other newly developing countries as well as the tight supply situation suggests higher prices.