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CPM Group - 2010 Platinum Group Metals Market Outlook

New York, June 2010

CPM Group has released its 2010 Platinum Group Metals Long-Term Outlook. The report explores the workings of investment demand, the drivers behind investors decisions about PGMs, and investment demand trends long-term implications for PGM market prices. The report provides a comprehensive analysis of the key market fundamentals of platinum, palladium, and rhodium that are expected to influence the price of these metals through to 2019.

Highlights:

The outlook for platinum, palladium, and rhodium over the next 10 years seems most likely to be one of historically high prices. This outlook is supported by expectations of increased fabrication demand, constrained supplies, and rising investment demand as a result of these positive supply and demand fundamentals.

A growing global auto population, tightening emissions standards, and the lack of commercially viable substitutes for PGMs in auto catalysts is expected to bode well for the fabrication demand of these metals going forward. Auto catalysts are the largest source of demand for the PGMs, which has resulted in growing concerns over new technologies such as electric vehicles and nanotechnology.

The report gives consideration to these trends and assesses their likely impact of PGM auto demand over the next 10 years. Demand from the electronics sector and other industrial sectors is expected to grow at a healthy pace during the forecast period.

China is the largest consumer of platinum jewelry. Populations in newly industrialized countries such as China are becoming more affluent. Chinese demand for jewelry is analyzed in the context of this trend.

Investment demand has always played an important role in influencing the prices of PGMs. The compelling fundamentals resulting from constrained supplies and rising fabrication demand are expected to increase investor interest in these metals, adding to the upward trend in prices.

In addition to hedge funds and wealthy individuals who typically invested in these metals, the launch of physically backed platinum and palladium exchange traded funds in 2007 has accentuated the role of this particular portion of the PGM market.

http://www.cpmgroup.com/