Gold And Silver Soar Leaving Platinum Dropping

May 23, 2009 | By | Reply More

Platinum languishes as gold and silver reach new multi month highs. Investors keen to participate in the commodity markets as prices rise in the face of the declining dollar look to gain from silver and gold.

Platinum prices have dropped by around forty percent from their peak as the metal’s major industrial users, auto manufacturers, show no signs of recovering from their current slump in sales.

Platinum production in South Africa, the major source, is expected to continue to contract and with a new political leader known to have some extreme left wing views the future for the supply of the metal remains uncertain.

Auto manufacturers cannot run down their stocks of platinum indefinitely and with the Chinese auto industry holding out against the rest of the world’s manufacturers by still showing signs of continued growth, platinum may yet prove a good long odds bet.

As gold moves ever nearer to the $1000 an ounce level platinum is likely to make some inroads in the jewelry trade at the expense of gold.

If the green shoots of recovery do indeed flourish then buyers into the platinum market at these depressed prices and taking a long-term view could well enjoy some excellent profits.

Platinum ETFs are an excellent way to enter the market and exposure can be as easily controlled as any other traded stock.

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Category: Platinum Group Metals

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