Platinum: The King of Precious Metals
Mainstream media is flooded with news about the gold and silver markets increasing in response to quantitative easing and hyper-inflation scenarios. Many investors have come running to the gold and silver markets hoping to protect themselves from the doomsday strategies that the Fed have been employing. The truth is that the end of the world isn’t here and the gold and silver markets are doing nothing.
Manipulation in the commodities market is common knowledge, but just like a paper clip if you bend and manipulate it too much, it will snap. So why invest in a market that seemingly has gone sideways? The answer is the industrial needs of the white metals is on an exponential rise and the king of all white metals is platinum.
It is common knowledge that platinum is used in catalytic converters but some of the less known uses for platinum include batteries, LCD screens and petroleum production. About half of all mined platinum is used for catalytic converters and continuing environmental concerns isn’t going to decrease that demand. A small car generally uses about 2-3 grams of platinum while a semi-truck is right around the ½ ounce mark.
One thing that no one can deny is that the world is changing. People are becoming more environmentally conscious and they want to leave the world better for the next generation. Revolutionary products are being invented, funded and even subsidized to match the public’s spirit. We are seeing great technological advancements in electrodes, electric cars and medical implants. Platinum is not only needed in all of these advancements, but in the case of electric cars, one ounce of platinum or up to 10 times the amount is needed much for a gas powered vehicles. The car industry has projected that by 2013, 1 out of 10 cars on the road will be electric.
The demand for platinum is getting so stressed that companies have been investing in finding cheaper ways to recycle the precious metal. Most of the precious metals recycling currently takes place in Japan, Europe and South Africa. We are starting to see North America getting into the industry with companies like NovX21 to help relieve the pressure on the market. Even with better technology in the recycling, the platinum industry simply isn’t prepared to handle the rising demand.
The main stream media hasn’t started talking about the challenges the world is going to face with its platinum supply, but it will only be a matter of time before the common investor catches wind and the opportunity is missed. Savvy Investors need to act quickly before the media saturates the market with sheep investors.