The chief driver behind their demand is their increased use in pollution control devises, especially catalytic converters, where growth is exploding exponentially, due to China’s and India’s auto markets and to increased mileage efficiency mandated by policy makers globally.
In fact, the automotive sector now accounts for as much, if not more, than 38 percent of the demand for palladium and 71 percent for platinum.
In addition, China has become a huge market for platinum jewelry, making up nearly 70 percent of global demand.
But here are the real kickers:
Russia accounts for as much as 54 percent of the world’s total mine production of platinum and palladium … while South Africa accounts for as much as 75 percent of platinum production and 38 percent of palladium production.
At the same time …
The ore grade of the platinum group metals, that is the amount of the metals found in ore, is declining rapidly, with a plunge of more than 50 percent in ore grades in Russia and South Africa combined since 1998.
But most important of all are the war cycles. Besides the increased use of these metals in high-tech military equipment, there is the very real chance that we will see Russia sanction the West by withholding part, or even all, of its platinum group metals from the market.
Again, specific recommendations for platinum and palladium are reserved for my subscribers. For now, I merely want to give you a heads up that these are two metals you will not want to ignore if you intend on maximizing your profits in the next leg up in precious metals.
I end with the same message as last time: Stay tuned in, very tuned in, to all of my writings.
If you do not, you may miss the most explosive turnaround to the upside — ever — in the precious metals sector.
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