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.