Now, Indian demand may push platinum prices 2009-02-10 21:35:00
MUMBAI: After languishing in the backyard for several months, platinum is finally showing some movement in global markets. To add to that is India’s new found love for the metal. Low prices have given platinum some attraction in India markets which showed a rise in platinum sales in the past few months.
However, the renewed interest in platinum has caused its prices to rise with the metal jumping to the highest close in almost a month in New York. The reasons for the rise was investment demand for the precious metal as a store of value amid a global economic slowdown. Palladium also soared.
Some investors buy platinum and palladium, used mostly in jewelry and auto parts, to hedge against declines in other markets.
Platinum futures for April delivery jumped $22.30, or 2.3 per cent, to $1,004.30 an ounce on the New York Mercantile Exchange after earlier climbing to $1,014.90, the highest for a most-active contract since Oct. 15. The most-active contract last closed above $1,000 on January 9.
Palladium futures for March delivery advanced $11.15, or 5.5 per cent, to $213.35 an ounce on Nymex, an increase of 10 per cent for the week.
In normal circumstances, Indians buy gold, but the price crash has made platinum more lucrative for Indians too.
In India, some jewellers import bars to make jewellery, and don’t always peg the daily price to international rates.
A 10-gm platinum ring was priced around Rs 22,000 as against Rs 35,000 a year-ago.
Suddenly, the number of people started buying platinum in India.
In fact sales have gone up almost 25 per cent in India. And the demand may go up further. The prices too will not remain at current levels, but this could expand the tiny market for the white metal in India.
PLA Price at posting:
53.0¢ Sentiment: LT Buy Disclosure: Held
