Ker-Plat: Platinum Nears 7-Year Low Following Volkswagen Scandal

Compared to this time last year, its price has sunk nearly 30 percent

Platinum traded at around $900 an ounce today, less than half its level four years ago, in what analysts called a reaction to the Volkswagen Dieselgate scandal.

At press time, the metal was trading at $909, after briefly sinking below $900 today and Tuesday. Platinum last traded below $900 in December 2008, following the financial crisis.

Compared to this time last year, its price has sunk nearly 30 percent. In August 2011, the metal’s price hit $1,912 an ounce.

The metal is also trading at substantially less than gold, which at press time was trading at $1,138 an ounce. Even more noteworthy is platinum’s premium over cheaper rival palladium, which has hit a 13-year low. At press time, palladium was trading at $679 an ounce.

Analysts attributed the white metal’s woes to the Volkswagen Dieselgate scandal. Platinum is used to make diesel catalysts.

JCK News Director