Japan is to consider adding platinum to its strategic metals reserves, as the precious metal supplies slowly drop.

Analysts told Reuters that there was a chance the country would look to hoard some metals as demand soars on the back of LCD screens and autocatalysts, but there are said to be difficulties because of the metal's price.

In addition, any move to snap up precious metals could unbalance the market, as a leading observer explained.

"In reality, it's difficult to add platinum as it is traded widely and could affect many markets if Japan actually starts buying," a source told the news agency.

"It would be hard to start buying platinum when prices are rising," he added.

An interim report on the development of the strategic metals reserves was released nearly two years ago, with the country keen to ensure it kept its place at the forefront of technology and innovation, for which platinum and other rare metals are often used.

However, no decision has been taken on the plans, with issues of costs, market fluctuations and even practicality in terms of physically holding the precious metal seen as the chief obstacles to any firm conclusion.


Ÿ Adfero Ltd