Asks the Telegraph.
The reason why not is actually all of the reasons advanced as to why it is.
Industrial demand, catalytic converters, mismatch, depressed car industry, PEM fuels cells etc etc etc.
That means that he\’s arguing that the platinum price is driven by commercial demand, for the desire to make things of it. Might make it a good investment, might not, but that\’s an entirely different situation from gold. The gold price is almost entirely driven by speculative or investment demand: industrial or commercial usage is a reasonable fraction of annual production, certainly, but is statistically close to zero as a portion of the outstanding stock.
The platinum price changes because people want or do not want to use it. Gold because people do or do not want to own it.
So, platinum is not the new gold, no.
The appropriately named Mr Price is also somewhat confused about the value of platinum.
In the near term, platinum prices remain distressed
Distressed compared to what? The looney toons levels they reached fifteen months ago? Anyone with any nouse could see that more than $2000 an ounce was unsustainable.
In fact today’s Pt price ($1,300) isn’t different from what it was before lunacy struck the metal markets and matches what the industry has been using as a long term (five to ten year) price for the past few years.
btw, Everyone is getting excited about the increase in the dollar and pound price of gold. They explain this as more people wanting to own gold. Has anyone considered it might equally have something to with fewer people wanting to own dollars?