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Platinum History

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PLATINUM

Platinum Contract History

If you are interested in trading platinum futures it is helpful to become familiar with the history of the platinum market. Platinum is the principal metal of the six-metal group that bears its name; the other platinum group metals are palladium, rhodium, ruthenium, osmium, and iridium. All possess unique chemical and physical qualities that make them vital industrial materials.

Jewelry creates the largest demand for platinum, accounting for 51%. Automotive catalysts take 29% and chemical and petroleum refining catalysts, 13%.

Platinum is used in the computer industry and in other high-tech electronic applications since it is an excellent conductor of electricity, does not corrode, and has a low reactivity with other metals. This sector accounts for about 7% of consumption.

Platinum is among the world's scarcest metals; new mine production totals approximately only 5 million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year, and silver production is approximately 547 million ounces.

Supplies of platinum are concentrated in South Africa, which accounts for approximately 80% of supply; Russia, 11%; and North America, 6%.

Because of the metal's importance as an industrial material, its relatively low production, and concentration among a few suppliers, prices can be volatile. For this reason, it is often considered attractive to investors.

NYMEX Metals Complex

Click on the link above to download a very informative .pdf brochure entitled "Metals Complex". It was published by the New York Mercantile Exchange. This is a must read guide for any speculator or hedger considering an trade in the platinum futures or platinum options.

Click here to contact a commodities broker with experience in the platinum market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicition. This material is not a research report preparfed by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

 
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