The rand has been particularly strong lately, not only against the US dollar but also against other major currencies and has affected the profits of resource stocks as rand platinum price acts as an indicator of whether or not to buy South African platinum stocks. For full story, click here
RBCCM warns on platinum group metal prices, platinum ETFs, and the pricing of the top platinum stocks, like Anglo Platinum. For full story, click here
Stocks of Lonmin, the third-largest platinum producer, increased 6.2 percent to 1,625 pence in UK. For full story, click here
Platinum is known as "high-octane gold", for its stronger price moves and prospects for a higher upside. Platinum is essential to the economies of many industrialized nations, globally, demand for platinum is the sum of; investment demand, industrial demand, and jewellery demand.
Platinum showed extreme volatility in 2008, rising to an all-time high of $2,290 an ounce in March on the back of a power shortage in major producer South Africa, before falling to a five-year low of $732.50 in October.
The sharp retreat of the stock market, combined with a higher US dollar has triggered a broad sell-off in the precious metals. Spot platinum slipped to a session low of $794.50 an ounce, down 8.8 per cent from $871.50 an ounce late on Friday.
Platinum miner Anglo Platinum (AMS) slumped 28.98 rand, or 6.34%, to 428.02 rand and Impala Platinum (IMP) was off 2.68 rand, or 2.34%, to 111.87 rand, but Lonmin (LON) added 2.17 rand, or 1.57%, to 140 rand. For full story, click here
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