There is never a dull moment in the world of precious metals and platinum is no exception, with a growing number of analysts who believe the platinum price may rally in Quarter 3. Recently there has been growing speculation that platinum is on the verge of a rally but we are yet to see visible gains.
Despite the price of palladium rocketing to a 13 year high, platinum hasn’t had quite the same price surge.
Some analysts say this is because platinum has been following in closer correlation the gold price than the palladium price, palladium it could be said it on a completely different price scale.
Additionally despite the strikes in the platinum market there hasn’t really been a price rally due to supply concerns. This could be due to some producers withholding platinum last year in anticipation of the supply concerns which occurred earlier this year. This meant that metals sales weren’t quite as affected as first thought.
However, what hasn’t changed is the constant increase in global car production and demand with platinum being the key component for diesel car catalysts. Therefore as demand rises in the developing countries so will demand for platinum which will be the likely factor causing a platinum price surge.