February 26, 2015

UK, 1936

9/18/1936: 1 Troy Ounce Platinum (UK Mkt, Ingot) =  £ 13.50 (USD$ 68.35)

"A remarkable advance in the price of platinum was experienced during 1936 when on September 18, the London quotation for the metal approximated £13 10s. or $68.29 per fine ounce in Canadian funds, later declining to $55.75 by October 3. "Metal and Mineral Markets", New York, commented on the situation in August as follows: "Though the demand for platinum against normal requirements of consumers has increased this year along with the general recovery in business, and prices have strengthened, the recent advance of $10 per ounce in a single day was not welcomed in platinum circles. The sharp advance on August 18 to $53 per ounce resulted chiefly from speculative activities. Literature has been distributed to probable buyers informing them that refined platinum is now available in convenient three ounce bars, properly assayed and stamped by a recognized dealer in the metal as to weight and fineness. The bars, it is stated, may be deposited in a bank and certificates issued against the platinum to facilitate trading. Speculation in platinum by the uninformed, producers fear, will do more harm than good to the industry". During recent years leaf palladium has been used in the same manner as leaf silver and gold ; palladium alloys, chiefly white in color, are utilized largely in the manufacture of jewellery; palladium is also employed as dental metal, as contacts"

"Speculation in platinum metal was initiated in New York early in 1936, when platinum was offered as an alternative to gold for hoarding purposes. The corporation concerned bought the metal and deposited it in a bank in the form of 3-ounce ingots, numbered and stamped for weight and fineness. Certificates were then issued on the backing of the metal held in the bank, and outside speculators dealt in the certificates at prices as much as £2 above the value of the metal. Speculation soon assumed serious proportions and the price of the metal advanced steadily. When the peak price of £14 was reached early in September a number of speculators attempted to take profits, but consumers who were but consumers who were already well supplied refused to buy and the speculative holdings were then offered at declining prices.  A. H. Atkinson and A. R. Raper, both of the Mond Nickel Co., Ltd., gave special attention to the subject of platinum at the autumn meeting of the Institute of Metals, which was held in Paris."

"When the peak price of  £14 was reached early in September, a number of speculators attempted to take their profits. Consumers who were already well supplied, refused to "buy." Speculative holdings have since "been offered at declining prices in order to tempt consumers to purchase. (Consular Clerk Alfred Nutting, London, Oct. 13, 1936.) Messrs, R. E"

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