For most people, trading precious metals is very rewarding especially in the modern technological era. Gold and silver are the most traded metals in the precious metal markets. As an investor, your goal is to seek a stable financial instrument. The simplest way to weigh the stability of a commodity is by looking at the most traded item.
Platinum is gaining trust and momentum in the financial markets. The main reason behind the continuous rise in platinum’s popularity is its vast industrial uses. Before they buy or sell precious metal Michigan, good investors analyze the market’s perception of the commodity they intend to invest in.
This article will look at the market drivers, uses, and future trade projections of platinum.
What are the Major Uses of Platinum?
Despite platinum having no direct biological uses, it has been used together with other components to offer a wide range of medical solutions. Platinum has other important industrial applications. Industries use platinum differently, as discussed below;
The Manufacture of Catalysts in the Automotive Industry
The automotive industry is the largest consumer of platinum worldwide. Platinum is almost inert, but it helps speed up other chemical reactions. Automobile manufacturers have used platinum to convert engine emissions into more environmental-friendly gases. Once vehicles ignite fuel in the engine, the exhaust fumes directly released into the atmosphere may lead to greenhouse effect in the long run.
To reduce environmental pollution by exhaust gases, car manufacturers use catalytic converters made of platinum to speed up the conversion of carbon (II)oxide to carbon (IV)oxide, which is more environmentally friendly.
Platinum is the major component in the spark plugs, especially those used to ignite fuel in gasoline car engines.
Applications in the Medical Industry
Platinum does not arouse adverse reactions in the body. Therefore, platinum is used to make pacemaker electrodes. There are some compounds of platinum that are useful in fighting cancer cells, and have been employed extensively over the years during chemotherapies.
The Manufacture of Jewelry
Most precious metals in the market are used to manufacture jewelry and ornaments. In the recent past, platinum jewelry has gained popularity due its relatively low cost compared to golden jewelry. The quality of platinum ornaments remains intact over years because platinum is non-reactive.
What are the Common Market Drivers for Platinum?
Platinum has limitless market applications. New and innovative uses of platinum continue to emerge. We can credit the increased platinum’s demand to the following factors;
The Rise of Eco-Friendly Energy Sources
Electric vehicles are steadily picking pace in the global market. The need to provide car manufacturers with a clean source of power for the vehicles is a big opportunity for fuel cell manufacturers.
Hydrogen cells are being used to provide zero-emission power sources for electric vehicles. The fuel cells use platinum both as a conductor and a catalyst. As a result, there is faster conversion of hydrogen to water and electricity.
Additionally, there is a new technology called a Proton Exchange Membrane. This technology uses platinum as a catalyst to offer mass production of hydrogen from bio-fuels. The Proton Exchange Membrane ensures there is no carbon emission during and after conversion. The hydrogen produced goes on to produce electricity.
How Does the Investor Benefit from the Rising Demand for Platinum?
The increased applications of platinum have boosted the investors’ confidence in the metal. The trust in platinum is reflected by the steadily rising prices of the metal in the commodity markets. For swing and day traders, this gradual rise in platinum prices presents an opportunity to buy and sell precious metal Michigan. Traders attains decent profits by trading retracements, then going going long at the right time.
For the long-term investors, trading platinum physically or virtually will almost guarantee a handsome return on their investments.
Conclusion
Platinum offers a wide range of industrial applications ranging from automotive to medical applications. The continuous campaigns for green energy have led to the development of innovative energy solutions. Modern technology and futuristic alternative fuels will lead to the progressive increase in demand for platinum. For precious metal investors, trading platinum could be the way to go.
