Live Metal Prices / oz
Gold:
1659.87 USD
Silver:
18.72 USD
Platinum:
871.00 USD
Palladium:
2209.50 USD
Rhodium:
14100.01 USD

China's Automotive Industry Supporting PGM Prices

China is one of the largest car manufacturers globally, and it is preparing to pump up its production again and boost its automotive industry after Covid. Following strict lockdowns and implementation of a zero-Covid policy, China suffered a negative impact on its massive automotive sector’s manufacturing and sales.

As platinum and palladium are core elements used in catalytic converters, China’s production growth could further improve the prospects of PGMs (platinum group metals). Buyers looking to invest in platinum will benefit from the positive shift in the Chinese automotive industry. 

China’s Automotive Industry Gears for Production

The news of the car manufacturing industry in China making a comeback after the past two years is being positively interpreted by PGM investors. Reports show that several major automakers are returning to optimal operations, and work is continuing at auto parts makers, chip manufacturers, and other relevant sectors tied to this industry. 

SAIC Motor, one of the largest Chinese auto manufacturers based in Shanghai, reported that three plants have returned to pre-epidemic manufacturing levels.

Hybrid vehicles, also manufactured in many Chinese auto plants, combine internal combustion and battery technology. These cars are also dependent on platinum and palladium. However, despite platinum having a tight supply and demand balance in the market, there is still a surplus, although surplus levels are marginally low. 

Investing in Platinum & Palladium

The role of platinum in the car industry has been one of the most significant aspects of PGM price fluctuations. As such, it is vital to note that platinum has historically performed better during times of economic growth. 

When manufacturing and industry prosper, the price of platinum is healthy. With Chinese automakers pushing up production levels, platinum investment is expected to make a comeback.

This also makes platinum a valuable, short-term asset with potentially better returns than gold.

Palladium should also be considered when considering investing in PGMs. Palladium is also in high demand from the auto sector. Its industrial applications are practically immeasurable. Palladium has been a key component in emissions-reducing devices for cars and trucks. It is used in catalytic converters in car exhausts, where it helps process toxic pollutants into less-harmful carbon dioxide.

Conclusion

Investing in the right precious metals can have huge impacts on a portfolio. As automotive sectors stand ready to retrace their pre-Covid growth, investment yields for the rare metals should quickly follow. 

SwissBullion.eu carries a wide range of platinum bullion products – these include platinum bars and platinum coins, as well as platinum combibars, larger sized platinum bars, and 1 ounce and fractional sized coins. Wholesale platinum bars or coins are also available. Palladium bars and coins are also available. Both platinum and palladium can be purchased for worldwide delivery and secure storage.