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Robust demand lifts platinum

August 26, 2012

ETF

Robust demand lifts platinum

Post by cnmining

Platinum climbed to a 17-month high on optimism that automobile need in China will keep on to grow as the nation leads the recovery from the international recession. Palladium rose to the highest since July 2008.

Platinum futures headed for the longest rally in a lot more than two many years following China’s motor vehicle income jumped 46 percent in 2009, overtaking the US as the world’s biggest automobile market and ending far more than a century of American dominance. Automakers account for almost two-thirds of world-wide platinum consumption.

“Platinum group metals are a needed element in construction of catalytic converters,” said James Steel, an analyst with HSBC Securities. “The prospect of a continued recovery in worldwide automobile demand this yr is good for platinum group metal charges.”

Platinum for instant delivery rose as significantly as 1.5 percent to $ one,615.75 an ounce, the highest price given that Aug 6, 2008. Futures on the Comex division of the New York Mercantile Exchange rose for an eighth day, the longest winning run because the 11 days to Oct 1, 2007.

One particular ounce of platinum expenses about $ 459 far more than an ounce of gold, a spread not observed considering that September 2008, when Lehman Brothers Holdings Inc’s bankruptcy filing dragged the worldwide economic system down. Platinum costs dipped briefly to less than gold for the 1st time in twelve many years in December 2008.

China’s revenue of passenger autos, buses and trucks rose to 13.six million last yr, the fastest pace in at least 10 years, the China Association of Automobile Companies mentioned yesterday.

The introduction of exchange traded funds linked to platinum and palladium is anticipated to inspire “considerable investor interest”, said Regular Chartered Plc’s metals analyst Dan Smith. The US Securities and Exchange Commission authorized proposed rule changes on Dec 22 to checklist and trade shares of the ETFS Platinum and Palladium Trusts.

Platinum holdings held in ETF Securities Ltd’s exchange- traded commodities products enhanced 158 ounces to a record 440,388 ounces on Jan eight.

Palladium for immediate delivery gained as significantly as one.1 % to $ 439.13 an ounce, although futures in New York additional as considerably as 1.9 percent to $ 440 an ounce. The two levels are the highest because July 16, 2008.

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