Although platinum prices softened during the third and fourth business quarters, the white metal’s prices were through the roof in early 2008, leading to twisted market results. Jewelry buyers looked for alternatives to platinum, like palladium and white gold, and the metals recycling business grew as people looked to “cash in” on the upswing. The heavy recycling boom, however, lead the global net demand to fall. Furthermore, retailers couldn’t keep up with last year’s dramatic economic slowdown, rarely adjusting prices at the right time.
These days, retailers can rest assured that platinum is currently affordable for more customers than in the past. This fact might hurt more than help, though. A recent article from Mining Weekly examines the expected decline for platinum demand in the jewelry sector, with in-depth looks at the markets in China, Japan, Europe, and North America. Supposedly, Swiss watches are the only accessory about to reach highs in the market. Citing Johnson Matthey’s Platinum 2008 Interim Review, the article points out numerous reasons that platinum demand can count on a slight fall.
Investors and analysts have much to say about precious metals futures. Although we’ve anticipated great declines, other analysts think that palladium, unlike platinum, could still have a bright and sparkly future. Maybe those “talkative” palladium rings from Sakurako Shimizu did the trick. Either way, stay tuned for more price predictions from metals experts Lisa Reisman and Stuart Burns on MetalMiner. They offer the metals news that matters — especially for anyone looking understand future twists in the market.