Platinum has diverse uses making it very valuable and expensive. Platinum is a precious metal and as such is tradable in the commodities market table, and unlike gold or silver, platinum does not enjoy much popularity even though it is more expensive than the two put together and as such, platinum is ripe for investing. On 11/24/2010 the price of gold was $1372.60/oz, platinum – $1658/oz, and silver – $27.57/oz. The price of platinum is set to increase in 2011 and it’s as a result of certain factors hinged on the uses.
Platinum is ductile, malleable and soft in nature and as such can be use for jewelries and wire. It can also be use to produce equipment used in laboratory work, electronics, thermocouples, coating agents, dentistry, automobile production etc. It is used in several scientific applications, one of which is a new medical breakthrough that is applied to spinal implants that consists of platinum. This discovery may assist paraplegic people in exercising their limps. This medical discovery by researchers uses small electrodes from platinum foil that stimulate muscles and tendons.
As can be seen from above, platinum plays a great role in the medical industries accounting for one of the major reasons for the high cost of platinum over major precious metals like gold. The question that will be considered is: will the high cost of platinum be sustainable? Will the coming year of 2011 bring another increase in the price of platinum?
Predicted platinum price
As the New Year fast approaches investors and stakeholders in the financial world are busy issuing different speculations as to the prices of commodities. What is the condition of platinum price, has it any likelihood of increasing or decreasing?
In the dawn 2000, the price of platinum dropped severely due to the decline in certain financial sectors, like car manufacturing, platinum took major hits in commodity values. However, in 2009 and 2010 the increase of auto catalyst in vehicles was predicted to increase especially in the Chinese car industry. Will this trend continue in 2011?
Financial professionals have speculated a boost for the price of platinum; the reason is due to the increasing recovery of the automobile industry which pushes the need for automotive catalyst costs to high heaven. The price of platinum and palladium is set to increase in the next 6 months into 2011.
The automobile sector is not the only price trigger for platinum in the coming year, other factors like the interaction of gold and the USD, and the predicted decrease in the mining of platinum from two major suppliers: South Africa production is set to fall by 1%, while North American production is set to fall by 19%, this combined with the increase in demand for automotive catalyst systems is set to shoot the price of platinum to a predicted $1,900/oz over the next six months.
Predictions for platinum prices over the next year are set to rise in part due to a recovery in the automobile industry, and fall in mining of these metals. With the current state of such volatile commodity markets, this is the perfect time to stake a claim in this precious metal.