Platinum Prices Low: But For How Long?

One of the key reasons that we’re able to bring you truly cheap catalytic converters is that we’re riding on a crest of low-price platinum. Platinum is a key element of a catalytic converter, acting as the said catalyst in the device to help reduce fumes from diesel engines.

In fact, platinum’s biggest use worldwide is in the automotive industry, with 44 per cent of global demand in 2017 coming from its use in catalytic converters. This dwarves the use of the metal in jewellery at just 32 per cent. This side of Europe, this amount is much lower however, as we’re driving far fewer diesel cars.

If it’s a surprise that something you consider as a precious metal is used in this way, let’s not get started on its use in everything from medical equipment to jet engines.

Supply and demand of platinum pretty much level pegs, meaning that price has been riding low for platinum for some time, according to Money Week. However, could it ever sky rocket again? After all, in the past, platinum cost more than gold, though this isn’t the case nowadays.

Looking at a chart of demand, created by data analysts, it appears that platinum demand could be due a rally. In the late 1990s, the price of platinum was again low, and it then increased by 700 per cent over the next ten years, until it was worth twice the value of gold.

And, while this may be in an unpredictable future that this could happen, the cost of goods, such as catalytic converters, that use this material, would undoubtedly increase too.

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