Soaring Metals Prices Cause Spike in Catalytic Converter Theft
There is a growing trend of catalytic converter theft. The catalytic converter is a part in the exhaust that neutralizes air pollutants (generated by the combustion engine) before the exhaust is released to the atmosphere. Catalytic converters, which are in just about every modern gasoline powered car utilize precious metals such as platinum, palladium and rhodium which have recently skyrocketed to all-time highs. Thieves sneak under the vehicle, cut out the catalytic converter and then sell it on the used auto parts market or even on E-Bay! Used converters can fetch $150 to $200 each or more.
Some of the thefts have been brazen – one case involved theft of a converter in broad daylight at a busy parking lot! (See Articles Below). The person had no idea anything was missing until she started her car and noticed how LOUD it was! By the time she took it to a mechanic and found out what had happened the thieves were long gone and the stolen converter was probably sold by then!
Why have they gone so high? Future demand for automobiles and industrial materials in China and India may have something to do with it. After all, there are hundred of millions of people in those countries that are seeing an increase in their standard of living…and guess what……they’re going to want cars just like people in Europe and the U.S. have. That means a huge demand for catalytic converters and precious metals used in them. There are also major power supply disruptions to precious metal mines in South Africa (a major supplier of platinum group metals) which are hampering production. Some speculate that these power disruptions may last for a few years.
SUVS and Trucks May Be At Particularly High Risk
Sport utility vehicles and trucks may be at higher risk for catalytic converter theft for two main reasons. They have larger catalytic converters than cars and they have higher clearance above the ground making it easier for thieves to gain access under the vehicle.
When Will This Trend Stop?
As long as the prices for platinum group metals are high, catalytic converters will be a tempting target for thieves.
Precious Metal spot prices of April 19th, 2008 02:16 PM New York Time:
Gold – $US 917.00
Silver – $US 17.87
Platinum – $US 2,060.00
Palladium – $US 464.00
Rhodium – $US 9,035.00
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