General info:
theminingweb.com
thebulliondesk.com
Scientific developments etc:
platinum.matthey.com
The cheer-leading Industry org:
platinumguild.org
QUOTE
Platinum's history, its role as a modern commodity and as a investment vehicle make interesting stories. We thought we would tell you about them.
Conquistadors, Counterfeiters, Scientists and Artists
The word platinum sometimes enjoys a cache higher even than gold, as platinum albums and platinum credit cards attest. However, widespread knowledge of the white metal stretches back only a few hundred years, versus thousands for gold. Despite being worked with some skill by South American Indians over 1,000 years ago, it was not until after the Spanish conquest of the New World during the fifteenth and sixteenth centuries that news reached Europe of a new white metal with unusual properties.
By the end of the 17th century, the Spanish Conquistadors had discovered alluvial deposits of platinum while they were panning for gold in the Choco region in what is today Colombia. They considered the metal a nuisance because it interfered with their gold mining activities. In fact, since platinum was considered of little value, it was soon being used by forgers to adulterate Spanish gold coins.
Despite its extreme rarity, platinum's extraordinary properties made it of interest to European scientists. Upon its introduction to Europe, platinum was noted as a substance that could not "melt by fire or by any of the Spanish arts." It was known to be even heavier than gold and to be virtually impossible to corrode with gases or chemicals. These properties piqued the interest of a Swedish assayer named Scheffer who, in 1751, recognized platinum as the seventh element known to exist up until that time. He was also the first to successfully melt platinum.
During the rest of the eighteenth century, platinum's star rose quickly. The very qualities that had, for centuries, made platinum difficult to work, now made it attractive for industrial uses. For example, platinum was used to make durable laboratory instruments in Berlin in 1784. In 1780, it was being used in France to make crucibles for glass production, a use that, to this day, consumes tens of thousands of ounces of platinum each year.
As new industrial uses for the metal were discovered, platinum's tarnishless beauty and strength also began to impress jewelers and goldsmiths. In 1788, Francisco Alonso of Spain crafted a platinum chalice, weighing nearly two kilograms, for Pope Pius VI. Other leading metal workers, such as Marc Janety, Royal Goldsmith to Louis XVI, and Pierre Chabaneu, of Spain, were also enchanted with platinum. Soon, platinum was being used to make expensive cutlery, watch-chains and coat buttons.
Early in the 19th century, new refining techniques increased platinum's availability for use in a growing number of industries. As more platinum became available, it was soon being used in gun parts, sophisticated batteries and fuel cells, the production of caustic chemicals (the first platinum sulfuric acid boiler weighed over 400 ounces) and the purification of hydrogen.
One constant problem preventing the even more rapid spread of platinum use was its extremely limited supply. In fact, in 1820, Columbia, still the only major producer of platinum in the world, ceased exporting the metal due to the nation's independence from Spain. Luckily for the growing platinum industry, a new supplier was soon found: Russia.
In 1822, alluvial platinum was proved to be present in the gold fields of the Ural Mountains. Since there was little demand for platinum in Russia for jewelry, industrial or scientific use, and still only modest amounts were needed abroad, the Russian government decided to make platinum into a monetary metal by producing platinum rubles. Over the next 18 years, the Russian government minted almost 500,000 ounces of platinum and, perhaps more importantly, introduced to the world the notion that platinum was not just a commodity, but was also, like gold, a store of value.
While industry and bullion coinage were major consumers of platinum in the 19th century, platinum jewelry remained rare until high-temperature jewelers' torches were developed later. Once this development was made, jewelry makers were quick to take advantage of platinum. Before the first decade of this century, the whiteness of diamonds had long been highlighted by setting them in silver. However, silver's relative softness meant that these settings had to be relatively heavy -- taking away some of the brilliance of the stone. Thus, as jewelers became more adept at using "the other white metal," platinum quickly took over the role of the diamond setting of choice.
The Modern Commodity
The number and scope of platinum's industrial uses have skyrocketed during this century to include neurosurgical and dental apparatus, drugs for cancer treatment, computer and automotive equipment. Indeed, one of every five goods manufactured either contains or is produced using platinum. One of its most essential uses is in auto catalytic converters. Within autocatalysts, platinum converts harmful emissions into carbon dioxide and water. Nearly one third of newly mined platinum is used in this fashion. Due to its function in the automotive industry, it has been dubbed "the environmental metal."
While new uses for platinum are being discovered almost daily, its supply is extremely restricted. Remarkable difficulties exist in its mining and production, with between 5 and 6 million ounces of new platinum reaching the world market each year; that figure is less than 5% of gold production. It is estimated that all of the platinum ever mined would fill a room measuring less than twenty-five feet on a side. Refining the metal poses its own problems; platinum occurs naturally in combination with other metals, necessitating an intricate process of extraction that takes about six months.
This problem is exacerbated by the limited sources of platinum production. The world's growing appetite for platinum is essentially satisfied by the mining activities in just two regions. The Bushveld Complex, which is just north of South Africa's capital, Pretoria, is one. The mines in this area produce more than two thirds of the platinum that reaches the markets each year. The other site is in the Noril'sk-Talnakh region in the extreme north of Siberia in Russia. It is estimated that at least one quarter of the world's supply is either currently mined here or is from above ground stocks that were accumulated over many years. Russia is the only nation with significant stocks of platinum and it is believed that these may be running out.
Platinum's relative scarcity in the face of newly discovered and ever-increasing uses makes for an attractive 21st century investment. Platinum's historical price performance and its unique fundamentals are attracting an increasing number of informed investors. Precious metals have long been recognized for their tendency to appreciate when other financial instruments, like stocks and bonds are declining. Investors, however, are not content with simply "securing" their assets against inflation and other economic dangers. They also demand the opportunity for capital appreciation. Platinum's unique fundamentals offer investors both: The ability to hedge against uncertainty and the potential for profit.
Platinum's supply/demand fundamentals are tight. In fact, according to some estimates, were platinum mining to cease today, above ground reserves would last about one year. In contrast, gold reserves would last nearly one quarter of a century. Platinum's supply is tight even during periods of relatively normal mining production. Enough platinum was supplied to world markets last year only after Russia exported considerable amounts of platinum from its shrinking above-ground reserves.
UNQUOTE
QUOTE
The Platinum Fact Sheet
--------------------------------------------------------------------------------
Platinum has unique chemical and physical properties that make it essential in a wide range of industrial and environmental applications. And yet, it is also considered one of the finest of all jewelry metals. Over 20% of all consumer goods either contain platinum or are produced using platinum. As a consequence, the continued expansion of advanced and developing economies has caused demand for the metal to grow at a faster pace than it is being mined.
Platinum is the"Most Precious" Precious Metal:
Platinum is the rarest of the precious metals.
Roughly 90% of all platinum supplies come from South Africa and Russia. Virtually all of the platinum mined in South Africa is pre-sold to industrial users.
In contrast with gold and silver, there are no large above-ground platinum stockpiles to fill the gap against significant supply disruptions.
Approximately 8 tons of raw ore must be mined to produce just one pure ounce of platinum.
Today, the finest and most elegant jewelry contains platinum.
It is a Multi-Purpose Industrial Metal:
Platinum is integral to the production of about 20% of all consumer goods. Platinum's unique physical properties make many industries dependent upon its use.
Gasoline, hard disk drives, anti-cancer drugs, fiber-optic cables, LCD displays, eyeglasses, fertilizers, explosives, paints and pacemakers all rely on platinum. Platinum is also the key catalyst used in fuel cells.
Japanese consumers buy approximately 48% of the world’s platinum jewelry each year.
Demand for platinum in high technology applications is soaring due to its unique properties: It is virtually impervious to corrosion, has a melting point in alloy of 3,215 degrees Fahrenheit, is a powerful catalyzing agent and is highly conductive.
It is an Environmental Metal:
Over one-third of all platinum supplied to the international markets each year is used in catalytic converters to control harmful automobile emissions.
Higher North American, European, and Asian automobile emission standards continue to add pressure to auto manufacturers to increase the use of platinum in catalytic converters and devices like oxygen sensors.
Platinum catalysts are a core component for fuel cells, a power generation technology that combines oxygen and hydrogen to form water and electricity. Fuel cells are poised to become the environmentally friendly power generation source of choice in the next century, and a key source of future platinum demand.
The White Wave in Jewelry:
The rise in popularity of platinum jewelry over the past two decades has been remarkable. Japan has long been a traditional source of platinum jewelry demand, but double digit growth rates over the past several years in both China and North America now make these two markets highly important. Combined they count for over 40% of world total platinum jewelry demand. Platinum is prized the world over for its understated elegance and its tensile strength, making it the most secure precious metal for setting precious stones.
Platinum coin jewelry is also popular around the world.
UNQUOTE |
