﻿The Volkswagen scandal﻿ has meant that diesel propelled vehicles stand to loose market share, removing a source of platinum demand growth, resulting in prices falling. Given that diesel after-treatment systems tended to be platinum-intensive, this had raised the spectre that demand for the precious metal could decline. The price of platinum has fallen about 22% in the last months to close at $910/oz in New York on Friday. "There are various barriers for an accelerated adoption of battery electric vehicles (BEVs), suggesting that the overall share of electrified vehicles will still stand below 3% by 2018 globally,” the BofA Merrill Lynch researchers estimated. Gold is also under pressure as investors seek safety from falling prices.
﻿The Volkswagen scandal﻿ has meant that diesel propelled vehicles stand to loose market share, removing a source of platinum demand growth, resulting in prices falling. Given that diesel after-treatment systems tended to be platinum-intensive, this had raised the spectre that demand for the precious metal could decline. The price of platinum has fallen about 22% in the last months to close at $910/oz in New York on Friday. "There are various barriers for an accelerated adoption of battery electric vehicles (BEVs), suggesting that the overall share of electrified vehicles will still stand below 3% by 2018 globally,” the BofA Merrill Lynch researchers estimated. Also the auto industry is expected to require fewer lead-based batteries at the expense of lithium batteries in the long term.