Platinum prices have slumped to their lowest level since the aftermath of the financial crisis as the Volkwagen emissions-rigging scandal gave the market another hammering.
The precious metal — a key component in catalytic converters for diesel cars — slid briefly below the $900 an ounce mark today for the first time since January 2009 amid concerns over the impact of the scandal on demand.
The metal has fallen for seven sessions out of eight, although some analysts believe the metal has been oversold.
HSBC analyst James Steel said: “It strikes us that not enough attention is being given to the likelihood that tighter emissions legislation and increased vigilance by the auto makers will increase platinum demand.”
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The price of palladium — used in petrol driven cars — has gone the other way amid an anticipated surge in buyers.
Volkswagen’s management changes — replacing Martin Winterkorn with Porsche boss Matthias Müller — drew fire from pension fund adviser Hermes today.
Director Hans-Christoph Hirt said the changes had not gone far enough, adding: “The problem is that it is a little bit of a reshuffle. The new chief executive is somebody has worked there all his life. There is a real question in my mind.”
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He added: “The company needs to do more to regain the trust of investors.” Volkswagen shares fell €2.28 to €104.75.