Platinum Prices Hit Record High

International platinum futures prices broke through the $2,300 per ounce mark for the first time on December 23. Compared to gold, another precious metal whose price is at a historical high, platinum’s relatively low price has attracted market attention.

The New York futures price, an international benchmark, rose by $234.4 (11%) to $2,323.8 per ounce on December 23, setting a new record. This is the first time it has reached a new high since 2008, approximately 2.5 times higher than at the beginning of the year.

Platinum is used in catalysts to purify automobile exhaust. News broke on December 16 that Europe is expected to lift its policy of banning the sale of gasoline-powered vehicles in principle, which is expected to expand demand for automotive applications, which account for about 40% of total demand. China launched its first platinum futures trading on the Guangzhou Futures Exchange (GFEX) in November. “Due to China’s economic slowdown and the need for asset preservation, platinum trading has become more active,” says Tsutomu Kosugane, head of Marketedge.

As gold prices rise, platinum, which is closely correlated with gold prices, has also attracted a large influx of funds due to its relatively low price. Because the platinum market is smaller than that of gold, its price fluctuations are often more volatile.