As discussed in a previous post on platinum prices, the primary industrial use of Platinum Group Metals (PGM’s include platinum, palladium, ruthenium, rhodium, osmium, and iridium.) is in the auto industry. The US governments foray into the auto industry and subsequent car-buying incentive, known as “Cash For Clunkers”, has effectively unleashed a lot of pent up demand.
This surge in auto sales and subsequent ramp up in production at Ford, coupled with the Fed’s recent announcement that the recession may be over, should return auto sales and production slowly to more normal levels. This production increase will consume more of the PGM’s in the catalytic convertors used to scrub hostile auto exhaust into more benign emissions.
Unfortunately, the government’s decision to destroy the drive-trains of these vehicles has the adverse effect of increasing mining or other means to meet the increased demands. While we can expect that the platinum will eventually get recycled, it’s a long journey from auto salvage yards to when the recycled precious metals make it back into new products. We encourage you to take advantage of this strong opportunity to recycle PGM’s. Please contact Manhattan Gold & Silverwith any PGM industrial lots.