Saturday - 02 August 2014

Platinum proves gilt investment

27 February 2006Written by ATG Reporter

Platinum was the talk of the commodities world last week after mining company Lonmin, the world’s third largest producer of platinum, was touted as the target of a possible takeover bid.

The precious metal has already jumped in price by 148 per cent in the past four years.

According to Brighton precious metal dealer Michael Bloomstein, platinum cost $420 per ounce in 2002 whereas it is now trading at $1040.

The percentage increase in the price of platinum outstrips even that of gold, which is currently trading at a 25-year high. Gold traded at $280 per ounce in 2002 and is $530 now, an increase of 89 per cent.

Mr Bloomstein said the surge in interest for platinum was down to its pureness, inertness and the fact it is a recognised form of currency. The Far East is driving the demand for the so-called “noble metal”, which is used by the electronic, technology, jewellery and car industries.

He added that the high price of platinum reflected a loss of confidence in the American dollar and a feeling of uncertainty about the world in general. He said: “Traditionally when there’s a lot of instability, people go into precious metals. It has always been the case.”

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