Categories: Energy / General Market Commentary / Precious Metals
Topics: General Energy / General Market Commentary / General Precious Metals

Stars aligning for platinum price

Stars aligning for platinum price

Frik Els

Platinum futures trading on the Nymex market in New York were in retreat last week but at $1,065 an ounce year to date platinum remains up more than 22%  thanks to predictions of another annual market deficit and the threat of labour action in top platinum producer South Africa which is responsible for 73% of global annual supply.

In its latest quarterly report the World Platinum Investment Council adjusted the supply deficit forecast for 2016 upwards by 16% or 65,000 ounces to 520,000 ounces, from 455,000 ounces previously, mostly on the back of lower than expected recycling growth. 2016 is set to the fifth annual year of market shortages for platinum, used mainly in jewellery and autocatalysts.

Positive sentiment has reduced the propensity of holders to sell platinum to meet deficits
Total demand for 2016 was expected to increase moderately year on year to 8.25m ounces. Total investment demand is forecast at 350,000 ounces, up 45,000 as bar and coin demand remains strong and after ETF net sales tapered in the first half of the year. Automotive demand is expected to be largely static as is jewellery demand – up 5,000 ounces on 2015 – buoyed by growth in India, the US and Western Europe offsetting declines in China and Japan, according to the WPIC.

To continue reading please click link http://www.mining.com/stars-aligning-platinum-price/