06 April 2010
Platinum Price Reaches multi-month highs, fails to excite physical interest
BullionSupermarket.com users continue to shun the PGM as Platinum shines
Platinum reached multi month highs today in the main currencies, but was largely ignored by Bullionsupermarket users that continued to favour Gold by a ratio of 60 to 1, and Silver by a ratio of 15 to 1 over the PGM.
Platinum market action was largely driven today by improving demand for other industrial metals, not just in China and the Far East, but also improving demand metrics in Europe and the US. But small physical buyers it seemed, sided with some analysts who cautioned that investment demand was on the back of positive economic news, rather than actual consumption. And this was driving industrial metal, suggesting that the raw materials market was vulnerable to a correction.
Gold remains firmly head of the pack amongst Gold, Silver and Platinum with BullionSupermarket users, as fears of currency debasement and inflation drive demand. Industrial metals such as Silver and Platinum have been lagging as buyers possibly fear a false economic recovery hitting those metals with more industrial applications than the pure store of value Gold can represent.