Platinum futures historical price charts would reveal direct spike correlations to historical events, such as the 1986 work stoppage of Impala Platinum Holdings in South Africa.
Overall, prices have more than quadrupled from $400 per troy ounce in 2000. Speculators would be advised to watch news very closely for any new technological developments that could signal platinum use reduction, since the current system is practically a monopoly.
Origin Of Platinum
Discovered in the 1600’s by Spanish Conquistadors (who considered it a nuisance obstacle to their gold mining operations), platinum is a rare precious metal that is silvery white in color and is a member of the platinum group metals (PGM), which also includes osmium, rhodium, iridium, ruthenium, and palladium.
Platinum Futures Contract Specification
“PL” is the ticker under which Platinum futures trade on the New York Mercantile Exchange (NYMEX), and contracts are in United States dollars per troy ounce. A single platinum contract on the NYMEX is for 50 troy ounces.
As with other precious metals, contracts can be comprised of plates or ingots, which must include standard assay hallmark information, including bar number, weight, symbol, grade, and assayer logo, and deliveries must not have a purity less than .9995
The last trading day is on the third business day before the end of each delivery month. Platinum futures trade both electronically on the CME Globex and in the pit on Open Outcry. A tick is equal to ten cents ($0.10) per troy ounce, or $5.00 per contract, and deliveries are made every month of the calendar. Platinum bullion carries an ISO currency code: XPT and 962.
Platinum Is Everywhere
Platinum has a wide range of uses, in spite of its relative scarcity. Its primary industrial use is in the manufacturing of catalytic converters for automobile emissions. A little more than half of annual output is devoted to this field. The jewelry and currency industry is the next largest consumer of platinum, and has the longest history.
The Russian rouble coin in the early 1800’s was one of the first instances of platinum use for currency, and the practice has continued through the next 200 years, as other nations have minted platinum based legal tender. Some examples include China’s Panda, Australia’s Koala, Canada’s Maple Leaf, Russia’s Ballerina, and the U.S. Platinum Eagle. Since platinum is tarnish and wear resistant, jewelers and watchmakers highly value platinum for their work.
Platinum Is Used In Electronics
The electronics industry uses platinum for the manufacture of platinum-cobalt alloy based permanent magnets, as well as for electrodes, non corrosive containers, wires and supports for thermogravimetric analysis, electric contacts, and thermocouplers. The chemicals industry is the fourth largest consumer of platinum, where it is implemented primarily as a catalyst for products like vegetable oil and high octane gasoline.
Platinum Is Used In Medicine
In medicine, Platinum is used for some types of chemotherapy in the form of Cisplatin, and is also being utilized as a component for silicone rubber and gel in the production of medical implants, such as joint replacements, artificial discs, vascular access ports, and breast implants, as well as dental prostheses and surgical instruments.
Platinum’s remaining applications include the making of oxygen sensors, spark plugs, engine turbines, and platinum-based anodes for ships, pipelines, and steel piers.
Platinum Futures Historical Price Charts Display Effects Of Supply Shortage
Roughly 65-80% of the world’s platinum is mined in South Africa, with North Siberian Russia responsible for another 11-20%. Other than on the moon, platinum availability is concentrated predominantly in these two areas. The scarcity of platinum and its escalated utilization over the last few decades has resulted in a scenario which makes historical platinum prices extremely volatile whenever there are any events reported that could disrupt supply.
It is estimated that current stockpile reserves could only last about one year, so supply is always tight.
|Standard Platinum Contract|
|Per Contract Size||50 troy ounces|
|Price Quotation||U.S. Dollars and Cents per troy ounce|
|Minimum Price Fluctuation||$0.10 per troy ounce|
|Termination of Trading||Trading terminates on the third last business day of the delivery month.|