Platinum is often viewed as a new and somewhat modern precious metal but its antiquity is quite surprising as the South American Incas and indeed the ancient Egyptians utilized it to form much of their finest and delicate jewelry. Even today, all platinum jewelry is meticulously hand crafted and painstakingly formed into the beautiful works of art that we see.
- Rarest of all precious metals
- Used in industrial and environmental applications
- Is brighter and purity than silver
- It is ductile, lustrous and malleable
- Does not tarnish or rot
- Super long lasting metal that exudes a wonderful preciousness
Platinum acts as the catalytic converter to reduce the levels of carbon monoxide, hydrocarbons and oxides of nitrogen. Similarly, 85% of platinum jewelry is made and consumed in China, Japan and USA.Not only this, the physical and chemical properties of the platinum makes it invaluable to many industries like: chemicals for processing of silicones, dental for dental restorations, fuel cells for power generation, medical for anti cancer drugs, petroleum for gasoline refine and finally investment purpose.
Platinum prices are highly correlated with international prices. The global prices are driven by a host of factors with macro-economic factors like strength of the global economy, currency movements, interest rates, rising importance of emerging markets being major influencing factors. Economic situation in major consuming countries like USA, Europe, Japan and China influence consumption on account to its high demand from industrial sectors, especially automobiles.
Platinum production is highly skewed with just four mines and two countries producing almost 90% of the total annual production. Prices are influenced profoundly by production disruptions, policies taken in producing countries. The influence of this factor is enhanced by the absence of any significant global stocks of platinum in the world, unlike that of gold and silver. Additionally, platinum mining is a very capital intensive industry, which discourages entry of new players. Any change in global stocks, of which a major portion is present in Russia do influence prices. The price movement in other precious metals, especially gold is a major influencing factor.
Why trade platinum through NDEX:
Contract size: Regular (2,000 gm)
Low transaction cost: Fixed spread of Rs. NPR 1.00 Per 10 Grams
Generous leverage: On all products that are clearly detailed on the trade.
Initial margin: Rs.75000 (Regular)
Hedging capability: Can take long or short position from same account
Months: Feb, Mar, Apr, May, Jun, Sep
Season: mostly in Feb
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Platinum is one of the rarest metals on earth, yet it can be found in a myriad of general consumer goods. This has led to wild fluctuations in supply and demand, which in turn has caused platinum's price to be quite volatile. Of course, this volatility only excites traders even more, and creates huge opportunities for profit (and loss).