Platinum sinks below gold

For the first time in six years, platinum prices dropped below gold on the London Metal Exchange.

During the last few days of July, platinum traded in the US$359-362 range, just shy of the presstime gold price of US$362.85 per oz. Platinum has not traded at a significant discount to gold since the fall of 1985. Platinum’s poor performance is attributed to selling by the cash-strapped Soviet Union. According to a recent report, the Soviets sold 22 tonnes of platinum in the first six months of the year, compared with less than two tonnes during the same period last year.

Platinum is used in the manufacture of catalytic convertors for the automobile industry.