Pan American Metals of Miami says Outlook for Platinum in 2012 is Positive

Top Quote Platinum has considerable upward potential in coming months. End Quote
  • (1888PressRelease) December 12, 2011 - MIAMI, FL - Over the past week, platinum has been the only precious metal not to have shown gains. Yet the outlook for platinum is far from dismal. Supplies are under threat as production costs rise while demand is set to increase as auto sales rise. Estimates are that the automotive industry will use 7 billion dollars' worth of platinum in the coming year. At the same time, South African platinum miners are demanding higher wages and production is low.

    At the time of writing, gold is trading at a premium of more than $200 over platinum. This reversal of the normal state of affairs cannot be sustainable. As platinum becomes even cheaper, compared with gold, it will be in greater demand in the jewelry industry. Traditionally, platinum is more expensive than gold, due to its rarity.

    "Ore deposits of platinum are extremely rare," says Bill Hionas of Pan American Metals of Miami. "The largest sources of platinum are found in South Africa, where production costs and labor issues have been creating problems, and Russia; these two countries account for 90% of global production of the metal."

    Platinum is both dense and malleable, a unique mix; it does not oxidize at any temperature and is highly resistant to corrosion making it ideal for a range of industrial uses, including jewelry making. However, its main use is in the automotive industry, where it is used in the manufacture of catalytic converters. As with palladium, there is considerable upward potential for platinum in the coming year.

    About us:

    Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.


    Press Contact

    Debbie Bailey
    Executive Administrator
    Pan American Metals of Miami, LLC
    Email: dbailey ( @ ) investpanam dot com

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