Global demand for platinum, the yellow metal's alter ego in terms of value, will increase 5.8 per cent annually from 2010 to 2020, mining corporate finance company Allan Hochreiter partner René Hochreiter said.

In those 10 years, supply of platinum will reach 10.319-million ounces, Mr Hochreiter said in The Mining Weekly, adding that demand had grown by 2.7 per cent a year since 1975.

Supply of the industrial metal will grow 9.834-million ounces as against the 6.6-million ounces recorded in 2010, before hitting a slump by 2015 that will edge slightly by 2020.

On Friday, spot platinum grew 0.7 per cent to $1,629.24 per ounce.

But not too many investors realize that platinum is selling below the price of gold by almost only $150 per ounce.

This is only the second time in 20 years that platinum is cheaper than the price of gold, Marc Countenay said in Seeking Alpha. During the last decade, platinum averaged a 64 per cent premium over gold, Mr Countenay added.

"This doesn't happen very often, and as I stated it's happened only twice in the last 20 years. When it does, it's often a strong buy signal," Mr Countenay said.

It was in November 2008 when platinum was cheaper than gold as it experienced a historic meltdown. Its close ties to the crashing automobile industry affected the metal. From over $2,000 per ounce it dived all the way down to $774 per ounce. But it eventually rose 145 per cent over the next two years.

"Industry expectations are for platinum to trade within $1,450 to $1,650 for the remainder of the year. But many of us think it will be back around $2,000 before the end of 2012," Mr Countenay said.

In 2010, 25 per cent of global platinum demand was spurred by China, hitting 1.985-million ounces, while requirement from North America represented 19 per cent, or 1.505-million ounces. Japan's and Europe's demands were 15 per cent and 27 per cent respectively.

The autocatalyst industry and jewellery sector pushed global demand of platinum by 3.125-million ounces and 2.415-million ounces, respectively.

Of the total demand, South Africa supplied 4.635-million ounces, Russia with 825,000 ounces and North America at 210,000 ounces, while recycling some provided 1.840-million ounces, Mr Hochreiter said.

https://www.ibtimes.com/articles/241769/20111102/ado-gold-platinum-changing-investment-mindset.htm