Rick Rule interviews Trevor Raymond, director of research at the World Platinum Investment Council, about promising signs that the market for platinum may be changing in the next few years — after nearly seven years of continuously downward prices. Platinum has its precious metal nature, but Raymond says the metal plays a remarkable role in other applications that are supply-demand drivers. He outlines four demand categories — industrial, automotive, investment and jewelry — and offers application examples for each one.
Platinum industrial use is strongly correlated to global growth, says Raymond. The metal is used in fuel cells for gasoline cars and in medical technology, including cancer drug treatments and surgery. It’s also used in the manufacture of nitric acid that goes into fertilizer. Of note is platinum’s interrelationship with other metals, particularly palladium, as it relates to the automotive application. Palladium is used in most of the world’s gasoline cars as a catalyst for cleaning emissions. With China driving the demand growth for gasoline cars amid the eighth year of a palladium supply deficit, along with significant palladium price increases, Raymond believes more automakers and fabricators may substitute platinum for palladium in gasoline vehicles. As a result, platinum’s price will sit closer to palladium.
Listen in on Trevor Raymond’s full breakdown of platinum’s demand categories.