HSBC remains bullish on both Platinum and Palladium Prices over the coming months. This sentiment is coupled with news that hydrogen filled cars are likely to increase platinum demand, through the rare metals fundamental role in the automobile industry.
Despite the previous strikes easing over the last couple of months, HSBC have stated they expect PGM’s to remain in a supply and demand deficit for the rest of 2014 and perhaps 2015 too.
Meanwhile news of hydrogen fuelled vehicles to feature more prominently is said to increase platinum demand.
Hydrogen fuel cell vehicles are likely to be the future as they do not emit toxic emissions therefore are likely to be on offer more and more over the coming years.
Hydrogen fuelled vehicles require a higher content of platinum than petrol and diesel cars, and as such supply and demand is not likely to be at a happy medium for some time yet.
Currently around 40% of platinum is used in catalytic converters and 30%-40% for jewellery, however with most governments across the world devising strict laws in a bid to reduce these toxic emissions, it is quite possible that we will see an increase in platinum usage sooner rather than later.