Reuters reported yesterday that while thus far striking at major South Africa-based platinum mines has had little effect on prices for the metal, that could change if production is halted for long enough. The tipping point will be the exhaustion of aboveground platinum stockpiles.
Articles Tagged "platinum price"
Mining Weekly reported that last week, the NewPlat ETF, which tracks the rand-denominated platinum price, recorded its largest outflow ever after prices for the metal hit a five-and-a-half-year high.
Explaining why platinum prices have seen little movement even as operations at South Africa's three main producers of the metal are impacted by strikes, Shanghai Metals Market quotes a Barclays plc (NYSE:BCS) research note that states that stockpiles of the metal are limiting price action.
Frank Holmes, CEO of US Global Investors, says the growing demand for fuel-efficient cars, along with supply disruptions, will cause platinum-group metals to trade higher in 2014.
Reuters reported that members of South Africa's Association of Mineworkers and Construction Workers (AMCU) have voted in favor of going on strike at Anglo American Platinum Ltd. (OTCMKTS:AGPPY), Lonmin plc (LSE:LMI) and Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY).
Kitco News reported that the fact that Eskom Holdings Ltd., South Africa's main utility company, is preparing to operate on "an usually tight reserve margin of 1,000 megawatts" for the next few months may end up being bullish for platinum prices.
Mineweb reported that according to Barclays plc (NYSE:BCS), platinum and palladium are likely to outperform both gold and silver in 2014.
Bloomberg reported that according to Momentum Asset Management (Pty) Ltd., the bonds of South African platinum companies are likely to outperform the debt of gold producers in 2014. That's largely because prices for the two metals are going in opposite directions.
Mining Weekly reported that according to Dr. Jacek Guzek, associated director of Deloitte, in 2014, the South African platinum market is likely to remain unpredictable, though it may be less volatile than it was last year.
Lately, Indian men have been favoring platinum jewelry over gold.