Industrial inventories of platinum are relatively thin. This as a result of the past two years supply deficits. On this basis, the price of platinum could remain firm. Add to that the opening of potential new markets for jewelry and investment demand, such as India, and one finds ample justification for an optimistic price outlook. This past year we ve seen the New Economy abruptly wake up to the vital importance of Old Economy players such as the power and energy industries.
Platinum already plays a key role in the refining of crude oil into gasoline and other products.
Going forward, it is the fuel cell, using platinum as a catalyst for generating clean power, and the promise of that technology to revolutionize power generation, that will provide a tremendous new sector of demand. Platinum s performance in 2000 and 2001 has caught the attention of IRA investors, who are now considering platinum as an investment alternative for inclusion in their IRA portfolios. The past year in the stock markets has taught many investors about the need for diversification. By putting platinum into IRAs, investors can add balance to their portfolios, to help ensure value in both good markets and bad. Exports from Russia, the world s second largest producer of platinum, have been sporadic.