JewelryPlatinum jewelry demand was forecast to account for...

Jewelry

Platinum jewelry demand was forecast to account for roughly 25% of total platinum demand in 2006 (dowm from 50% in 2000). High and volatile prices have adversely affected purchases of platinum across the major regions, particularly China.

This precious metal is highly valued for its beauty and purity together with its particular properties. Although in Europe and USA the normal purity is 95%, in certain countries the purity may be down to 85%. Platinum colour, strength, hardness and resistance to tarnish are some of the advantages of this metal in jewelry. It provides a secure setting for diamonds and other gemstones, enhancing their brilliance. Moreover, its flexibility is an important element for jewelry designers. Platinum jewelry is regarded as the precious metal for the "New Millenium".

Platinum jewelry demand had been increasing steadily for two decades (1980-1999). The world's leading platinum jewelry market had for long been Japan, where platinum is very popular and fashionable. However, this market has been affected by the situation of the Japanese economy during the last few years. In the meantime platinum demand has grown sharply in China, which has overtaken Japan as the world's leading platinum jewerly market. The white metal has become highly appreciated and consumed in China. As a result, platinum-manufacturing capacity has been developed in China. Europe and North America are also quite dynamic markets for platinum, particularly in rings for the bridal sector.


Autocatalyst

Platinum, together with palladium and rhodium, are primary elements in autocalysts that control vehicle exhausts emissions of hydro-carbons, carbon monoxide, oxides of nitrogen and particulate. Autocatalysts convert most of these emissions into less harmful carbon dioxide, nitrogen and water vapor. Autocatalyst was forecast to account for almost 51% of total platinum demand in 2006 (up from 25% in 2000).

Demand for platinum in autocatalysts started to increase significantly in the seventies when clean air legislation was introduced in USA and Japan. Many other countries followed this policy since then. However, in the 1990s, there was a substitution from platinum to palladium in autocatalysts in the United States, mainly due to its relatively lower cost and better performance in autocatalysts. In Europe platinum was more widely used since it is an essential element for diesel cars. Recent developments in the palladium market together with technological advances have led to a switch back to platinum. In recent years demand for platinum in autocatalysts has shown a considerable growth in emerging countries that introduced new environmental legislation. Demand for platinum in this application is expected to grow as stricter emissions standards and regulations are approved.

Electrical and electronics

Platinum is used in the production of hard disk drive coatings and fiber optic cables. The increasing number of personal computers will have a positive effect on platinum demand in the future. Other applications include thermocouples that measure temperature in the glass, steel and semiconductor industries or infra-red detectors for military and commercial applications. It is also used in multi-layer ceramic capacitors and crucibles to grow single crystals

Chemical

Platinum is used in fertilizers and explosives as a gauze for the catalytic conversion of ammonia to nitric acid. It is also used in the fabrication of silicones for the aerospace, automotive and construction sector. In the fuel sector it is important as a petrol additive to enhance combustion and reduce engine emissions. Moreover, it is a catalyst in the production of biodegradable elements for household detergents.

Glass

Platinum is used in glassmaking equipment. It is used in the manufacturing of fiberglass reinforced plastic and of glass for liquid crystal displays (LCD). In this context, some new developments in the production of LCD glass and cathode ray tubes, both used in computer screens should be mentioned.

Investment

Platinum is seen as an attractive investment vehicle and as a good way of hedging assets against inflation. This attraction for platinum investment is spreading worldwide and is based on platinum relative scarcity, its historical price performance and unique fundamentals. Investing in platinum may be done in futures and options or in bars, ingots and bullion coins like the American Eagle, the Australian Koala or the Canadian Maple Leaf among others.

Petroleum

Platinum is used as a refining catalyst in the petroleum industry.


Medical

Platinum is used in anti-cancer drugs and in implants. It is also used neurosurgical apparatus and in alloys for dental restorations.


Spark plugs

Most vehicles in North America use platinum-tipped spark plugs. In Europe higher durability requirements have led to an increase in the amount of platinum used in spark plugs.

Fuel cells

Fuel cells are devices that generate electric power. They are being developed as an alternative to internal combustion engines in vehicles. Most fuel cells apply proton exchange membrane technology producing energy from hydrogen and oxygen by using platinum catalysts. The use of fuel cells brings about environmental and economic advantages. They are more energy efficient and produce negligible pollution. All the major automotive companies, lead by Daimler-Chrysler, are planning to have fuel cell powered light vehicles by 2003-2004. Actually, there are already some fuel cell heavy vehicles working. However, the doubt remains since every vehicle using a fuel cell will be one that will not use a conventional autocatalyst. The effect on platinum demand will depend on which device uses more platinum. Present research is focusing on improving performance and reducing costs of fuel cells. Fuel cells can also provide stationary power generation. The use of platinum in fuel cells seems to be one of the platinum applications with best prospects for future demand.

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