Platinum to Rise 16% as Car-Sales ‘Whammy’ Ends

The price of platinum, used mainly in jewelry and auto pollution-control devices, may rise 16 percent to $1,400 an ounce as demand for new cars gains in the U.S. and China, according to Citigroup Inc.

The CHART OF THE DAY shows platinum lagged behind the recovery in auto sales in China, where car demand surged after purchase incentives were part of the government’s $586 billion economic stimulus program. Vehicle sales on the mainland rose 48 percent in June from a year earlier. The chart also shows U.S. vehicle demand, which increased sequentially three of the past five months, according to data compiled by Bloomberg. (more)