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Things are shaping up well for investors in the Platinum Group of Metals (PGMs).

 

Just to recap the group consists of Palladium, Rhodium, Iridium, Ruthenium, and Osmium as well as Platinum

 

Their principal use is as catalysts, that is that they allow or increase the efficiency of chemical processes.

 

Approximately half of all the platinum, palladium and rhodium produced is used in vehicle emission technology, in plain words catalytic converter exhaust systems.

 

Another important and growing use in this water hungry world is the use of PGMs in converting hydrogen to water in fuel cells, arguably the future for autos, and in other water processes such as desalination plants.

 

Increasingly technological advances in manufacturing and medicine, with new ´high tec´ products being constantly developed, call for the unique attributes of PGMs to be incorporated in their production.

 

Current stocks of PGMs are reportedly below 2005 level and mine production is being outstripped by demand.

 

Prices have increased along with demand but with the prospects for the uses for PGMs looking promising this look set to continue.

 

Before jumping in there is just one word of caution.

 

A catalyst is defined as a substance that influences a chemical process without itself undergoing any change.

 

In that case all the platinum, palladium etc. used as catalysts, half of annual production, can theoretically be recovered and used over and over again.

 

Cost involved in recovering scrap is obviously a factor that becomes more significant as the prices of the metals increase.

 

Getting accurate figures concerning worldwide recycling are difficult to obtain and to then relate them to mining production.

 

It is important to be aware that all are produced as a by product of other mining activities so have a good think about the future for the principal metals, often nickel, that are being produced before venturing into this end of the market.

 

Platinum can be bought as bullion or there are mining sector specialist mutual funds and ETFs that can spread the risk but still give profitable exposure if you think this market has still plenty of steam left in it.

 

 

 

iridium osmium platinum Platinum Group rhodium ruthenium