As of today, the price of platinum is about $1027.00 an ounce with gold at $1253.55 an ounce. Platinum is not usually lower than gold. It has been quite a ride for precious metals in the last couple of years. The good news for investors is that at least platinum is up from a year ago.
At the start of 2016, a rebound in prices might have made investors optimistic about a long term rally, however, that wasn’t to be as the metal’s price has declined steadily since August.
While volatility is likely to continue, there are factors that should keep the metal from falling too much more.
This year a strong US dollar, lower jewelry demand, limited mine output and a rise from the auto industry related to tighter emissions standards in emerging markets and you do have some good news.
Add to that another rising metal, palladium and you have an interesting market.
Continued supply deficits are expected to boost platinum and palladium prices in 2017, with palladium outperforming due to its heavier use in the key auto markets of the U.S. and China.
Bezel set platinum diamond ring, Mrs. Jones & Co.
“We’re positive on the platinum group metals and we have been for some time,” said Mike Dragosits, senior commodity strategist with TD Securities. “We’re a little bit more positive on palladium than platinum.”
Expected supply deficits in the next year are likely to mean further draws in existing above ground inventories of these metals, said Robin Bhar, metals analyst with Societe Generale. Their main industrial uses are for catalytic converters in motor vehicles.
The real result of all these market changes? It’s a great time to buy platinum jewelry.
The use of platinum goes in and out of fashion. The metal was coveted by the ancient Egyptians, discovered centuries later by the Incas and prized by members of the French royal court. Before its was declared off-limits during World War II, platinum was king in important jewelry the world over. Platinum ruled the Edwardian age of jewelry. Its beauty, versatility and style were “rediscovered” in the early 1990s, and today, one in four brides chooses platinum for her wedding rings.
One of the wonderful things about platinum is its purity. When you buy 18 karat gold, you are getting 18/24ths, or 75% gold. When you buy platinum, you are getting 85% to 95% pure platinum. Most jewelry sold in the US is 85% to 95% pure platinum and will be marked with the appropriate stamp. Pieces marked with a 950 purity are a blend of 95% platinum and 5% alloy metals (usually ruthenium , copper, cobalt, iridium, rhodium, or palladium). This high purity make the metal tarnish resistant and hypoallergenic as well.
Platinum is also one of the rarest precious metals on earth and is found in only a few locations. The most vital and principal deposits of platinum are based in the United States, South America, South Africa, Russia and Canada. South Africa and Russia are probably the two largest producers right now.
JAR platinum briolette and diamond band.
If you like platinum, this is the time to buy.