Platinum in Pain as Volkswagen Uproar May Hurt Diesel Demand
- Analysts say VW deceit risks damaging confidence in diesel
- Platinum, trading at 6-year low, is used to cut car pollution
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Volkswagen AG’s emissions scandal may be another blow for platinum prices trading at a six-year low.
The German carmaker’s attempts to rig U.S. pollution tests risks hurting the attractiveness of diesel engines in curbing emissions, according to analysts at Mitsubishi Corp. and Deutsche Bank AG. That would be bad for platinum because 44 percent of the metal’s demand comes from devices that curb harmful gases from cars, particularly diesel types.