Bloomberg reported that as platinum miners limit supply, demand for the metal is increasing. It is expected to end the year at $1,690 per ounce, up 16 percent from its current price.
Platinum Market News Directory
Bloomberg reported that last year, platinum saw a shortage of 375,000 ounces, the biggest since 2002, largely due to strikes and work stoppages in South Africa, as per information in a report released today by Johnson Matthey.
NASDAQ reported that South African supply problems are making it likely that platinum will see a strong price increase in the coming weeks; that means it may be a good time to invest in platinum ETFs.
MetalMiner reported that on Monday, the price of Chinese platinum bars increased by 1.9 percent, while the price of Japanese platinum bars was little changed.
CNBC reported that platinum prices could move higher if Anglo American Platinum Ltd.'s (OTC Pink:AGPPY) talks with the South African government and unions in the country result in a substantial restructuring of the nation's platinum sector. Such restructuring could involve cutting as many as 14,000 jobs and mothballing two South African mines.
Bloomberg reported that in 2012, platinum fell into deficit for the first time since 2004, according to Thomson Reuters GFMS. Consumption of the metal rose 1 percent, hitting 7.19 million ounces, in part due to expanded jewelry demand.
Mining Weekly reported that according to research group Frost & Sullivan, the South African platinum sector’s long-term fundamentals remain attractive amid labor unrest, high operating costs, and increasing cost of electricity.
Bloomberg reported that Zimbabwe, which has the second biggest platinum reserves in the world, is in the process of creating a law that would enable its government to seize companies’ controlling stakes without paying.
Mining Weekly reported that a public-private partnership in South Africa has been created to look into a special economic zone (SEZ) known as the Platinum Valley Hub which will be aimed at attracting platinum investors.
Mining Weekly reported that the Association of Mineworkers and Construction Union (AMCU) president, Joseph Mathunjwa, said the union rejected the collective bargaining proposal of the Chamber of Mines (CoM) for the platinum sector.