Not only is the quantity of platinum used in each catalytic converter increasing, but the number of new cars being sold in the United States has surged to levels not seen since 1988. Supplies of platinum from Russia, the world's second largest producer of platinum, have been dropping consistently since 1992. The collapse of the Soviet Union has caused labor and equipment shortages and distribution bottlenecks. The European economies are already showing signs of faster growth and increased car production is expected to follow soon. Tougher pollution restrictions requiring more platinum will likely be instituted in 1996.
Japan is the largest buyer of platinum in the world.
Japanese purchases of platinum jewelry have risen every year since 1983. Investment demand by individuals around the world is rising. Many are attracted to the vastly improving fundamentals in the platinum market. Platinum has historically tended to be more expensive than gold because it is considerably rarer and has more extensive and irreplaceable applications. Diamond Palace makes no representation or recommendation as to the advisability of investing in platinum or other precious metals and is in no way responsible for any representations made by others.