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During the period, platinum rose at a 3.1% annual rate (not adjusted for inflation).
Platinum-Group Metals Statistics and Information
Since 1979, the automotive industry has emerged as the principal consumer of PGM. Palladium, platinum, and rhodium have been used as oxidation catalyst in catalytic converters to treat automobile exhaust emissions.
It would therefore make some sense that oil and platinum are somewhat linked. I would argue that the data shows that. I have included the price of oil and platinum as of of September 3, 2007 as part of the data set in the following chart. It stands alone in the upper right hand corner.
If history is any indicator, one might expect the price of platinum to rise about $15 for each dollar oil rises. Keep in mind that history does not have to repeat though. Mad Max wasn't exactly driving around the countryside trying to scrounge up platinum. Right?
Conclusion: I'd really need to know where oil and global auto sales are heading before I'd want to own platinum. I therefore have no opinion on its current price.
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