First Trust ISE Global Platinum Index (PLTM) rallied 9.0%, 17.2% and 23.9% the past week, month and three months.
By contrast the flagship Market Vectors Gold Miners ETF (GDX) added 2.6% that past week. It lost 1.39% and 11.3% the past month and three months.
Platinum miners are also outpacing silver miners. Global X Silver Miners ETF (SIL) fell 0.36%, 3.1% and 7.7% over the past week, month and three months.
"If one accepts the premise that the global economy will recover in 2013, then (platinum) would benefit from increased automobile production," Christopher Blasi, president of Wilmington, Del.-based Neptune Global Holdings, a precious metals dealer, said in an email. "This argument is particularly compelling in light of Russia's decreasing inventory of palladium and ongoing disruptions at South African platinum mines."
2. Healthy auto sales will drive demand for platinum, a key component in catalytic converters, which accounts for 40% of platinum use.
Platinum is a precious metal that also has industrial uses in autocatalysts as well as in areas where gold is also used: electronics, medical and dental equipment. Other industries make up 22% of platinum demand and jewelry 32%.
The seasonally adjusted annual rate of sales (SAAR) for U.S. autos totaled 15.2 million in November. JP Morgan estimates the SAAR for auto sales will climb 5.3% to 16 million this year with the help of easing credit standards.
"The average vehicle life has extended significantly since 1996, rising from 8.7 years to 10.8 years (currently)," JP Morgan's analysts wrote in a "2013 Equity Outlook" report released in December. "The current level of auto sales works out to about 49.7 cars per 1,000 adults, still quite low. Historically such a level of sales has been associated with troughs in auto demand."
China's auto sales could grow 7% to more than 20 million units this year, owing to economic growth and urbanization, Bloomberg reported Friday.
China's current car-ownership rate of 44 per 1,000 pales in comparison to the global average of 135 and a U.S. average of 600.
"The long-term outlook is second to none," Scotiabank analysts wrote in a client note.
BofA Merrill forecasts total global auto sales will rise 5.6% in 2013 and 4.1% in 2014.
"However, as the (platinum) price rises it also becomes more lucrative for recyclers, who often hold on to their positions to liquidate at higher prices," Miguel Perez-Santalla, vice president of precious metals exchange BullionVault.com, said in an email. "How much are they holding and how much more will come to market as the prices rise? This is a big guess. However, year upon year projected short falls in both platinum and palladium do not seem to come to fruition. Why is that? I believe it is the increasing supply of both metals from recovery of existing auto-catalyst and thrifting by manufacturers."
By contrast the flagship Market Vectors Gold Miners ETF (GDX) added 2.6% that past week. It lost 1.39% and 11.3% the past month and three months.
Platinum miners are also outpacing silver miners. Global X Silver Miners ETF (SIL) fell 0.36%, 3.1% and 7.7% over the past week, month and three months.
"If one accepts the premise that the global economy will recover in 2013, then (platinum) would benefit from increased automobile production," Christopher Blasi, president of Wilmington, Del.-based Neptune Global Holdings, a precious metals dealer, said in an email. "This argument is particularly compelling in light of Russia's decreasing inventory of palladium and ongoing disruptions at South African platinum mines."
2. Healthy auto sales will drive demand for platinum, a key component in catalytic converters, which accounts for 40% of platinum use.
Platinum is a precious metal that also has industrial uses in autocatalysts as well as in areas where gold is also used: electronics, medical and dental equipment. Other industries make up 22% of platinum demand and jewelry 32%.
The seasonally adjusted annual rate of sales (SAAR) for U.S. autos totaled 15.2 million in November. JP Morgan estimates the SAAR for auto sales will climb 5.3% to 16 million this year with the help of easing credit standards.
"The average vehicle life has extended significantly since 1996, rising from 8.7 years to 10.8 years (currently)," JP Morgan's analysts wrote in a "2013 Equity Outlook" report released in December. "The current level of auto sales works out to about 49.7 cars per 1,000 adults, still quite low. Historically such a level of sales has been associated with troughs in auto demand."
China's auto sales could grow 7% to more than 20 million units this year, owing to economic growth and urbanization, Bloomberg reported Friday.
China's current car-ownership rate of 44 per 1,000 pales in comparison to the global average of 135 and a U.S. average of 600.
"The long-term outlook is second to none," Scotiabank analysts wrote in a client note.
BofA Merrill forecasts total global auto sales will rise 5.6% in 2013 and 4.1% in 2014.
"However, as the (platinum) price rises it also becomes more lucrative for recyclers, who often hold on to their positions to liquidate at higher prices," Miguel Perez-Santalla, vice president of precious metals exchange BullionVault.com, said in an email. "How much are they holding and how much more will come to market as the prices rise? This is a big guess. However, year upon year projected short falls in both platinum and palladium do not seem to come to fruition. Why is that? I believe it is the increasing supply of both metals from recovery of existing auto-catalyst and thrifting by manufacturers."
No comments:
Post a Comment