IRIDIUM METAL STOCK DRIVERS

However, that estimate drops to 15 years if growing demand, particularly from growing industrialization and automobile sales in the developing world, is taken into account.

IRIDIUM METAL STOCK DRIVERS

Other demand drivers like medicine and petroleum, which are functions of aging populations and global economic shifts, will place stress on PGM supplies as well.Īnalyses indicate that presently-known platinum reserves are sufficient for another 360 years at present rates of production and consumption. Furthermore, the building of new oil refineries and industrial growth in a recovering economy will put further stress on supplies. In addition, tightening environmental restrictions worldwide are forcing the use of more PGMs per vehicle to meet emissions rules. The growth of auto sales and industrialization in the developing world, particularly Brazil, Russia, India, and China (the BRIC countries), as well as interest in PGM jewelry and investment by newly-prosperous populations, will place significant stress on available supplies. Tightening of supplies comes at a time of accelerating demand. Already, palladium has entered a period of supply uncertainty and political destabilization. Concerns about peak metals, the idea that availability has peaked for limited resources and future production will be reduced and/or more costly (which has already occurred for a number of important minerals), will soon be an important influence with PGMs. Like most natural resources, PGM supplies are inherently limited.

While this degree of fluctuation is exceptional, it's emblematic of the behavior of critical materials in limited supply, tied to broader economic forces like auto sales.Īt this time of growing markets, the limits of supply are becoming clear. Rhodium, for example, went from slightly over $6,000 per ounce in mid-2007, to $10,000 per ounce in mid-2008 and then crashed to a little above $1,000 before the end of that year. Prices of PGMs are high and notoriously volatile. Of course, selected PGMs are also highly prized in jewelry and investment. Those applications include autocatalysts, the critical components in the catalytic converters found in most vehicles that reduce harmful emission catalysts used in a broad range of industrial processes, including petroleum refining high temperature processing of abrasive materials such as glass disc drives and electronic components medical and dental implants and devices and electrochemistry. Up to now, there have been no other materials that can duplicate their performance in fundamental applications.

Group Metals Platinum group metals (PGMs), namely platinum, palladium, rhodium, iridium, ruthenium, and osmium, are rare, expensive and critical to today's economy.

Iridium metal stock