Platinum Group Metals Prospects, 2017
3 Dec 20180 comments
Rarer than gold and silver, Platinum Group Metals (PGMs); comprising Platinum, Palladium and Rhodium; enjoyed a good year in 2016, although early gains did fall back as the year ended. Of the three PGMs, Palladium performed particularly well, with 20% growth year on year.
In what is certain to be an eventful and unpredictable year, given the high degree of geopolitical uncertainty, analysts are optimistic about the future for gold and silver. However, they are less bullish for PGMs. Actually, they expect 2017 to reflect the latter stages of last year, with global demand showing declines. These expectations are primarily due to a sluggish forecast for new car sales and a continuing fall in the jewelry market; that is the two main users of PGMs. Expectations about mining production predict a relatively flat evolution. Moreover, given the dominant position held by South Africa, the Rand / US Dollar exchange rate will heavily affect prices.
Nevertheless, prices will remain at a level where the recovery and recycling of PGMs from catalytic converters continues to offer good financial rewards.