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related
also:
 Platinum
Futures Market Facts
For
both speculating and hedging the platinum futures
contract is a legally binding commitment
to accept delivery of the metal at an agreed upon
price. Also, platinum position traders do change positions,
such as from short to long or from long to short, before the
appointed delivery date.
Platinum (derived from ‘platina’ translated as ‘little silver’ in
spanish) the
greyish-silver
precious metal is indeed extremely rare.
It is part of the Platinum group of metals (PGM) that together
includes palladium, iridium,
rhodium, osmium and ruthenium. The metal can be found with
copper and nickel ore mineral deposits.
Platinum has corrosion, tarnish and wear resistant properties
along with special capabilities as a catalyst.
Which is important, since Platinum is indeed so scarce - it is
used only for those applications for which it is uniquely
advantageous. Applications include: fuel cells and certain
automobile
parts/exhaust and catalytic converters, high end jewelry,
electrical parts, medical implants and restorative dentistry.
Platinum catalysts
are in use in the refinement of crude oil and for producing
high octane gas. Possible applications may involve chances at
improving
fuel cells.
The majority of all platinum mining is done below ground. Where
PGM is extracted and brought about through a smelting process
and then refined, seperating it from other metals which it is
found with, like copper, nickel and cobalt.
It has been estimated that above ground supplies would be exhausted
in under a year without re-supply. Something auto manufacturers
depend on for catalytic converters. Although platinum for the
making of jewelry may decline in 2011.
World production: The main sources of platinum are few and among
their rank is South Africa, Russia and the United States.
Outside terra firma, while meteorites
and the moon are known to contain significant amounts of platinum,
it remains to be seen whether these deposits could reasonably
be mined and refined.
Futures are traded on the NYMEX. An alternative might be funds
at the London Platinum and Palladium Market as a traded fund.
Another possible investment vehicle for platinum is coins.
The exchanges do places limits, known as set position limits,
on the maximum number of futures contracts a trader can hold.
Taking into account whether the trader is a speculator or
a hedger. That helps maintain orderly markets.
Position traders of platinum hold contracts for a number of trading sessions.
Day traders, hold position in a day.
Scalpers manage to operate in single sessions.
Our futures
information gives details as well on the Gold
Futures Market and the related Silver
Market Futures and for the metals of the Copper
Market next to our Platinum Market resource,
for further details.
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