In the international market, the price of platinum is increasing more than that of gold. Due to this, those who used to invest in gold worldwide, have now started investing in platinum.
Currently, platinum jewellery is more popular than gold
In India too, the demand for platinum is on the rise.Jewellery Platinum, known as white gold, is used to make artistic jewellery. More than these, platinum is used more in the automotive industry.
Inside the vehicle exhaust system, a mixture of platinum, palladium, and rhodium is coated to reduce the amount of carbon dioxide. The platinum compound works as a catalytic converter that reduces the toxicity of vehicle exhaust.
Along with this, platinum has a lot of contribution in various research work including electroplating industry. Globally, after the industrial sector, platinum is widely used to make jewellery. China, Japan and USA are the leading countries with 85 percent contribution in the production of platinum jewelry in the United States.
An estimated 130 tonnes of platinum is produced annually.
South Africa's Anglo American Platinum Company is the number one producer of platinum and its by-products. The company accounts for 70 percent of global platinum production. As the demand for platinum is increasing day by day, so is its price. Over the past 2 to 3 years, gold has seen a higher price than platinum. However, since the beginning of this year, the price of gold has fallen by 5 percent.
Meanwhile, platinum prices rose 5 percent over gold.Foreign Markets In the international forerunner markets, an ounce (28.35 grams) of gold on Monday traded at $1,613 and platinum at $1,686 in intraday trade. It is an indication of what is to come, said those related to the department.
In this case, as the US has shown signs of recovery from the economic recession, it is expected that the automotive market will heat up in that country. It seems that the use of platinum required by the automotive industry will increase. As a result, platinum prices are likely to rise further.
In Chennai, as of yesterday, the price of one gram of platinum was Rs 3,594. This will cross Rs 4,000 in the next one year, said a jeweler. However, demand for flat jewellery is still in its infancy as far as India is concerned, he added. At the same time, investment in documentary investment schemes like 'Platinum ETF' and 'e-Platinum' is increasing rapidly.
It is estimated that the investment in this segment is growing at an average rate of 30 per cent per annum. The National Spot Exchange launched the 'e-Platinum' scheme in April last year. It has now increased to 10 to 12 kg. Retail investors have started investing heavily in platinum.
Production impact: Meanwhile, in South Africa, due to the miners' strike, platinum production has been affected and its supply has decreased. As a result, there is an expectation that the price of platinum will increase in the coming months.
With the aim of taking advantage of this opportunity, investors are investing heavily in projects such as 'Platinum ETF' and 'e-Platinum', said an analyst from the sector.