Johnson Matthey Profits Up, Palladium Prices Drive Record Index Rise

TOKYO (Aug 9) The monthly Global Precious Metals MMI® saw its highest spike since September 2012, up 8 percent from July, based on across-the-board increases in platinum, palladium, gold and silver prices in the US, China, India and Japan.


In a special spotlight this month, PGMs –platinum-group metals, especially platinum and palladium – were the largest movers. Gains in the US automotive markets, bolstered by car sales numbers, may have had some effect on price increases (platinum and palladium are both used in catalytic converters). Also, rising labor costs in South Africa are constraining PGM supply, which also pushes prices up.


Johnson Matthey, of course, benefits from increased auto demand, and their profits show it.


On the gold and silver side of things, our friends over at ETF Securities point to recent malaise being ”tied to weaker economic fundamentals, increased uncertainty and the prospect of ongoing central bank stimulus” in a recent report, the latter being the main cause for gold’s lower prices earlier this summer. However, transactional prices on our index showed no downside.


Biggest Movers


After dropping the previous month, the price of Japanese palladium bar prices rose 13.8 percent. The price of US palladium bar rose 10.3 percent after falling the previous month. After dropping the previous month, the price of Chinese palladium bar prices rose 10.2 percent. The price of Japanese platinum bar rose 9.5 percent after falling the previous month.  


Japanese gold bullion prices rose 9.2 percent. The price of Indian gold bullion rose 8.7 percent after falling the previous month. US platinum bar prices rose 7.2 percent. The price of US gold bullion rose 7.1 percent after falling the previous month. After dropping the previous month, the price of Chinese gold bullion prices rose 6.3 percent. The price of Japanese silver rose 5.3 percent after falling the previous month. Chinese silver recorded a 0.9 percent increase. US silver shifted up 0.8 percent last month.