'Platinum Yearbook' shows continued price hikes
June 27, 2007
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| Prices for platinum jewelry, such as these earrings by Tycoon, will continue to rise this year, according to a report by the CPM Group. |
New York—The prices of platinum group metals will continue the climb that began several years ago, according to a new report by the CPM Group.
Released on Tuesday, the "Platinum Group Metals Yearbook" states that worldwide economic growth has led to a strong fabrication demand for platinum, palladium and rhodium. The report expects this end-use to continue to increase as worldwide emission standards continue to tighten.
This year has also seen a hike in investment demand for these precious metals as part of a broader investor interest in commodities in general.
According to the report, platinum prices reached record levels both this year and last year. Platinum prices averaged $1,146.94 per ounce in 2006, a 27.4 percent increase from the average price in 2005. During the first five months of this year, prices averaged $1,240.73 per ounce, a 12.5 percent increase from the same period in 2006.
Palladium is now trading at about $370 per ounce, more than double its 2003 low of $150.50. Demand increased 11 percent in 2006.
Rhodium prices also reached record levels in terms of monthly and annual averages, although they have not surpassed the intraday high of $7,000 per ounce reached in 1991. Rhodium prices averaged $4,359 per ounce in 2006, a 121.6 percent jump from the average price in 2005. Through May 2007, the average price was $5,852 per ounce, a 50.1 percent increase from the same period in 2006.
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