Despite all the bad news for platinum in 2015, it is likely that the downturn in the price of platinum for 4 years or over. The price of platinum has never been so low relative to the price of gold.
Historic of platinum price compared to gold price.
Source : Bloomberg
In recent years, platinum price, a precious metal used in autocatalysts and jewelery making was on average 34% more expensive than gold at $ 273 an ounce. But that changed, the price of platinum falling to $ 228.60 an ounce earlier in October. This is the largest gap reached since 1987.
Such a gap indicates a buying opportunity, the platinum price decline is not expected to last as Saxo Bank A / S. According to Bloomberg analysts, platinum price should rebound next year.
Although the two precious metals are popular with investors – as an asset to hedge risk – about 60% of the demand for gold comes from jewelry making.
Platinum is used in much wider fields including the industrial level for the production of catalytic converters, in laboratory tools and in the dental material.
Howard Wen, a precious metals analyst at HSBC Holdings Plc, said,
« It is very rare to see more transactions in gold on platinum. We expect that the platinum is traded above the price of gold next year. »
Volkswagen crisis and its impact on platinum price.
Platinum, used in devices that limit the harmful gas car (especially diesel) has had one of the victims of the crisis of the Volkswagen AG group. The platinum price per kilo lost 10% in September after the German manufacturer admitted his attempts to rig the US pollution tests for diesel models and is down 17% this year due to weak demand for metal.
Philip Klapwijk, CEO of Precious Metals Insights Ltd., said by email
« It all depends on whether one believes that the VW scandal marks the beginning of diesel of death or if the end result will be much less radical on the demand for automotive catalysts based on platinum. But we can say that bad news see already on the price of platinum. «
Which forecasts for gold and platinum prices ?
Source : Bloomberg
The price of an ounce of platinum fell to $ 892.50 an ounce, October 2nd. The Gold / Platinum ratio reached a record of 1.26 that day there, just enough to buy 0.7924 ounces of gold.
Gold meanwhile could remain low over the next year, as the economic outlook improves and the Federal Reserve will increase interest rates near zero. This fact will decrease the attractiveness of gold, considered a safe haven.
Barnabas Gan, revisionist gold prices at Bloomberg estimates that the price of an ounce of gold is expected to average $ 950 per ounce in the fourth quarter of 2016 while the forecasts for the price of platinum are $ 905 ounce.
Platinum has traded last Thursday at $ 1004.80 per ounce. The price of platinum is expected to reach 1 $ 150 next year, and will extend the increase in the next three years to $ 1,400 in 2019.