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Platinum prices tumble to lowest in nearly seven years – Commerzbank

FXStreet (Delhi) – Research Team at Commerzbank, note that the Platinum prices are under more pressure than gold and shed a good 3% yesterday. The downswing is continuing this morning as platinum has dropped in price below $900 per troy ounce, hitting its lowest level since December 2008 and is under continuing pressure from the Volkswagen scandal.

Key Quotes

“The heavy losses suffered by platinum have widened the price differential between gold and platinum to over $220 per troy ounce, its highest level since exchange trading of platinum began in 1987, since which time platinum has generally been more expensive than gold.”

“The considerable discount on platinum as compared with gold is likely to prompt the jewellery industry to resort increasingly to platinum, which should cushion any potentially lower demand from the automotive industry. By contrast, the platinum to palladium price ratio has narrowed noticeably: at 1.4, it is at its lowest level since March. The previous time it was this low was in April 2002.”

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