New consequence of the major concerns weighing on the future of the U.S. automotive industry and the general decline in sales of manufacturers: the price of platinum and palladium are left to decline during the past week. Remember that these two precious metals are an integral part of the process of manufacture of vehicles, particularly regarding the catalytic converters. Daily Finance and Investment Tips / Make Money by Learning
The platinum price has plunged below $ 800 an ounce, reaching U.S. $ 769 Friday morning. It now comes from its lowest for five years (744 dollars) reached in late October.
Palladium was meanwhile fell to 183 dollars Friday, not far from its low in late October ($ 165, a low for three years).
Main factor in this "fall": the "big three" U.S. manufacturers, Ford, GM and Chrysler, which alone employ about 564,000 people worldwide, trying - desperately so far - to persuade Congress to save the bankruptcy with a $ 25 billion.
Recall that in 2007, the needs of manufacturers had increased by 8.2% to 4.23 million ounces of platinum, the automotive sector remained the main driver of the market. An increasing number of vehicles were equipped with catalytic converters in Europe, Japan, and South America, to meet standards more stringent in terms of emissions of particulates. Still, if manufacturers are seeing their stocks inflate concession and reduce their production, demand for platinum is mathematically reduced.
Although Johnson Matthey foresees a deficit of 240,000 ounces on the market in 2008, concerns about market demand and are the "strongest".
On the London Platinum and Palladium Market, platinum ounce eventually to 812 dollars against 845 dollars last Friday evening at auction. The ounce of palladium finished at 183 dollars against 216 dollars last Friday evening fixing
