Trevor Raymond: Platinum Could Benefit from Diesel Turnaround

TL;DR

The Platinum sector has seen a significant increase in institutional buying of Platinum ETFs, recognizing the potential demand growth drivers, such as diesel cars, gasoline engines, and fuel cell vehicles.

Transcript

I'm Priscilla Barrera with the investing news network and here with me today is Trevor Raymond director of research at the world platinum investment council Trevor thank you so much for joining us again it's a pleasure to be here Priscilla thank you so we're here at Sprott we're in Vancouver we're entering the second half of 2019 when looking at th... Read More

Key Insights

• 🪛 Increased institutional buying of Platinum ETFs reflects recognition of potential demand growth drivers in the Platinum sector.
• 😮 The price of Platinum has started to rise after years of negative sentiment and declining prices.
• 😨 Diesel car sales and industrial usage are driving increased demand for Platinum.
• 🪛 Substitution of Platinum for Palladium in the automotive industry is a possibility, driven by availability concerns.
• 🚙 Fuel cell vehicles, particularly in ports and city bus fleets, are expected to contribute to Platinum demand in the future.
• ❓ Supply growth in the Platinum sector is challenging, with limited potential for expansion.
• ❓ The market conditions for Platinum are becoming tighter due to increased investment demand and limited supply growth.

Questions & Answers

Q: What are the main trends in the Platinum sector for the first half of 2019?

The main trends in the Platinum sector include significant buying of Platinum ETFs, recognition of demand growth drivers such as diesel cars, gasoline engines, and fuel cell vehicles, and a decrease in market deficit.

Q: Will the price of Platinum continue to rise in the second half of 2019?

The price of Platinum has already shown a 10% increase in 2019, and with tighter market conditions and increased investment demand, it is possible that the price will continue to rise.

Q: Is there a substitution of Platinum for Palladium in the automotive industry?

There are indications that substitution is happening, especially due to the availability concerns of Palladium. With increased diesel car sales, Platinum is favored in low-temperature environments, while Palladium is used in gasoline engines.

Q: Are factors like hydrogen fuel cells considered in Platinum demand forecasts?

Platinum demand forecasts primarily focus on the next 12 months and include factors like fuel cell vehicles. While battery vehicles dominate sales currently, fuel cell cars are expected to gain traction in the future, potentially bringing additional demand for Platinum.

Summary & Key Takeaways

• In the first three months of 2019, Platinum ETFs saw a significant increase in buying, with the institutional demand recognizing potential demand growth drivers.

• The price of Platinum has seen a 10% increase so far in 2019, signaling a potential turnaround after seven years of negative sentiment and declining prices.

• Increased investment demand and strong growth in industrial usage are contributing to tighter market conditions for Platinum.