Platinum prices were volatile in 2011 and look set to continue that way in the early parts of 2012. Still, analysts have a positive outlook.
Minweb reports an interview with Jonathan Butler from Johnson Matthey about the factors currently influencing supply and demand in the PGM sector.
Johnson Matthey (LON:JMAT) reports gross demand for platinum increased by 16% to 7.88 million ounces.
Resource Investor.com reports that Johnson Matthey has published their 2010 interim review on Platinum- and have indicated positive forecasting for price, supply and demand- but the industry will not be without its' pitfalls
Platinum prices, already on the positive track, got a boost this week from declining greenback and the announcement of GM’s Bankruptcy. GM’s bankruptcy is by no means a positive for platinum, as the auto industry accounts for approximately half of global platinum demand; however, platinum’s price has been reflecting the impending bankruptcy for many weeks.
Platinum has bounced more than 30 percent since plunging to a five-year low of approximately $732 an ounce in October. This ascent is occurring despite the absence of physical buying from the industrial sector. This rebound, without appropriate technical recovery is puzzling analysts.
Platinum rebounded early in ’09, and came back into the four digits, the metal’s highest value in over 12 weeks. In 2008 the metal went on a wild ride, hitting a peak of $2,290 per ounce, and then came crashing down to a three digit value. Despite the metal starting the year on a good note, RBC capital markets has cut its platinum price forecast for the next two years.
Thursday, December 15, 2011