Private wealth could gravitate towards white metals

Investors may want to use their private wealth to purchase shares in white metals such as platinum and palladium, rather than focussing on gold.

A new report has revealed that interest in platinum is increasing among investors, backed by the global economy beginning to show signs of recovery, particularly within the car manufacturing sector.

Platinum is used to make catalytic converters, a device half of all cars require, the Telegraph stated.

Private wealth, recently put towards gold, which is seen as a safe investment, may be focussed more on white metals over the coming months.

Speaking to the newspaper, Edel Tully, chief metals strategist at UBS, said: ’Our strongest conviction is for a rebound of auto-related platinum-group metals demand as worldwide vehicle production rises, forcing a restocking of the metals inventories run down in 2009.’

Despite such expectations, the price of gold rose to $1,133.40 (£744) per ounce on Monday (April 5th), the highest value since early March.ADNFCR-2318-ID-19709995-ADNFCR