The Platinum Group Metals (PGM’s) continue to trend upwards.  Last friday 0n the EIB rhodium opened at US$9,050.00/toz. Rh remains in strong technical demand and prices are propped by a great many overlapping factors. Uncertainties in the mining business in South Africa buoy uncertainty among investors. Recent electrical distribution shortfalls and blackouts have interrupted production as have mine floods, labor disputes, and a shortage of experienced miners and managers.

Automotive pollution catalytic converters dominate the demand for platinum and rhodium. As demand for Pt and Rh continues to grow, look for companies to switch to palladium in key applications.  Russia holds a strong position in Pd inventories. As demand for Pd rises, look for Russia to exercise its muscle.

As Au and Pt prices continue to climb, look for jewelry demand for these metals to taper off.  Asian demand for these metals is substantial. Eventually, jewelry prices will temper demand for gold and platinum.  Meanwhile, interest grows in North American PGM resources.

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