Can Asian Computer Sales Outstrip Falling US Auto Demand?
Even more so than silver – and unlike Gold altogether – fundamental supply and demand drives the platinum market much more than investment. For the past four years, there have been supply deficits. But that may be about to change. Approximately 80% of the world’s platinum comes from South Africa. For more than a year now, electrical problems and rolling blackouts in South Africa have created supply disruptions. The mines are still not running at full capacity. Yet, as supply tightened at the start of 2008, demand increased. This sparked the rally that pushed platinum to a high of $2,278 per ounce in March. Investor demand for the exchange-traded platinum fund in London (similar to the Gold ETFs) also pushed the metal higher. But platinum is extremely volatile, and with recession now impacting industrial demand – notably from the auto industry – it’s now flirting with a four-month loss of 25%. The very largest large part of the world’s annual platinum supply goes into catalytic converte
