Make Kitco Your Homepage

Gold Throws Platinum a Life Line

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

??
Philip Newman, director at Metals Focus.

(Kitco News) - Higher gold prices will support platinum prices, this according to Philip Newman, director at Metals Focus.

Newman spoke Wednesday at the International Precious Metal Institute's Auto Catalyst and Fuel Seminar in Atlanta, Georgia.

Platinum dropped 4% to US$895 ounce over the past 12 months. Over the same period, palladium shot up 48% to US$1,279 oz. Palladium benefits from more stringent emission standards. Palladium is better suited to the current generation of catalytic converters.

Despite platinum group metals being used predominantly for industrial applications, platinum is still a precious metal.

"There is a relationship between platinum and gold," Newman said. "Yes, we have seen the discount reach record levels, and that has invited investor skepticism. We believe the relationship still holds, and that will be the main driver for the platinum price."

Metals Focus said gold will test the US$1,400 oz level this year, which will pull platinum prices higher.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News