Platinum prices, in common with those of other precious metals, have been buoyant for much of this year, which invariably leads to conjecture over the likelihood of any near-term correction. True, the spot price for platinum, like gold, has been dragged upwards by the flight to physical assets, as uncertainties linger over currency instability, and the extent to which the US Federal Reserve might intervene in the economy, but there are also significant non-speculative factors at work.
Above anything else, prices for metals such as platinum and palladium have risen on the back of the recovery in automotive markets, particularly those in Asia. The latter metal, which is used extensively in the manufacture of catalytic converters, has appreciated by around 60 per cent this year. And now industry analysts are beginning to quantify a similar future price driver for platinum, namely the emissions legislation relating to heavy duty diesel (HDD) vehicles.
