Platinum tumbles to five year low
Duncan Richardson, News Editor
7 Oct 2014, 9:49 a.m.
The platinum price fell below $1,200 per ounce yesterday for the first time in 5 years as investors turned bearish on concern demand from China and Europe is weakening.
The platinum price at one point fell to $1,190.25 per ounce before recovering to $1,215.63 per ounce.
The platinum price has retreated 12% in Q2 following the end of the five month mining strike in South Africa. The price of the white metal has been under pressure from slowing demand for catalytic convertors in Europe and jewellery demand in Asia.
Holdings in the world’s largest platinum Exchange Traded Funds (ETF’s) are at their lowest levels since May and 5.3% below their all-time high. In total investors own 84.2 tonnes of platinum in ETF’s. Gold ETF’s have not fared so well with holdings down 36% from their 2012 high.