Commodity Online quotes a report from Fortis Metals Monthly according to which the price of platinum climbed at the end of May, rising from $1,175/oz to a peak of $1,275/oz on June 10, the highest since September 2008. As with many commodities, renewed economic optimism has

helped to firm prices. Nevertheless, at just 6%, platinum's increase lagged behind that of base metals with the LMEX index gaining 13% over the same period.

A problematic trend for platinum is the declining share in European markets of diesel-engine vehicles, which still use platinum rather than palladium catalysts. During January-April the share was 47.2%, a drop from 52.9% in 2008, and 53.6% in 2007.

Be this as it may, investors seem unconcerned by this shrinkage in the main industrial offtake for platinum. The Chinese platinum jewelry demand is very strong, feeding a sense of optimism. The latest forecast for Chinese platinum jewelry demand is 1.5 million oz in 2009, which is impressive even as a gross rather than net (of recycling) figure. Turnover on the Shanghai Gold Exchange (SGE) on a rolling 12 month basis is the highest it has ever been, at just under 900,000 oz.