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What Moves Platinum Futures Price?

platinum price study

Platinum futures price can be affected by any turbulence in the financial markets as well as its availability.

Over the past two hundred years platinum has remained a top selling metal but it has its ups and downs.  During the early 1800s Columbia was a main producer of platinum, however they abruptly stopped exportation which sharply affected the market price.  About two years later platinum was discovered in the Russian Ural Mountains. 

Over the next few decades the Russian government had this precious metal made into rubles and minted hundreds of thousands of coins as part of the nation’s new currency.

Daily Platinum Prices (NYMEX)

Early Discovery of White Metal

Platinum, also known as the white metal, was discovered in Europe as early as 750 B.C. It was later found and used by South American Indians who in turn introduced it to the Spaniards.  After the Spanish Conquest platinum was produced for the purpose of making coins.  It quickly gained popularity due to its excellent attributes. 

It is heavier than gold, could not be melted by traditional fires and is not subject to corrosion.  By the 18th century it was in high demand by royalty and businesses alike.  Common platinum jewelry of the 1700-1800’s would have included watch chains, platinum wedding bands, earrings and bracelets.  It was also used to stabilize or strengthen tools and cutlery.

Uses of Platinum Now

As technology advanced in the 19th and 20th centuries, platinum was sought after for its use in many new applications.  Originally used for making coins and later made into bullion for savings or investment purposes, it is now used in the production of guns, industrial machinery, dentistry, electrical contacts, production of chemical and scientific apparatus and also used as a catalyst or conduit for certain solutions.

platinum point and figure chart

Demand Drives Platinum Futures Price

Today, platinum is mainly supplied by Russia and South America.  South America provides 76% of this metal to the world market while Russia takes care of roughly 14%.

At 31% Europe is by far the leading importer of platinum with Japan second at 20%. Next is North America at 17% with the rest of the world’s demand at 32%.  There are no hard facts regarding how much of this precious resource remaining, however the Russian supply is rumored to be depleting quickly.

The rise and fall of platinum futures price is directly linked with the financial markets climate as well as its availability. Once Columbia stopped production in 1820, the price of platinum rose dramatically.  When Russia became the new supplier,  platinum price stabilized and evened out. 

It remained consistent for many years until we experienced another market crash.

Platinum Futures Price For Past 30 Years

Over the past 30 years the price of platinum has fluctuated yet it remained at a constant during the past 20 years.  In 1992 it was valued at $360 per ounce while today it is way up at $1850 per ounce.  Investors have always seen the value of obtaining coins as an investment.  With platinum futures price on the rise and history proving its median value it may be time to consider platinum as a viable commodity for investment.

As platinum which is a limited resource, rapidly runs out, you can expect a sharp rise in the platinum futures price.

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