Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Rate Hikes & Gold
By: Stewart Thomson

Gold & Silver Trading Alert: How Will We Know That the Bottom Is In?
By: Przemyslaw Radomski, CFA

Is Gold as Dead as Florida Hurricanes?
By: Dennis Miller

The Fed "IS" the problem!
By: Bill Holter

More GLD Drawdowns
By: Turd Ferguson

The Flat Debt Society
By: John Mauldin

Krugman Sees 37' - We Raise him 9
By: Market Anthropology

How Much Gold Is On Loan Worldwide?
By: Dan Popescu

Who benefits from inflation?
By: Manish Thatte

Gold & Silver Market Morning
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch

 
Search

GoldSeek Web

 
Platinum Surges 12% YTD – Mine Closures Sees Supply Fall to 13 Year Low



-- Posted Wednesday, 6 February 2013 | | Disqus

Today’s AM fix was USD 1,670.00, EUR 1,234.93, and GBP 1,066.55 per ounce.
Yesterday’s AM fix was USD 1,678.00, EUR 1,240.02, and GBP 1,063.57 per ounce.

Cross Currency and Precious Metal Table – (Bloomberg)

Gold edged off $0.50 or 0.03% in New York yesterday and closed at $1,673.00/oz. Silver rose to $32.10 in London before it dropped off to $31.60, but it then bounced back higher midday and finished with a gain of 0.25%.

Platinum in Nominal USD – 1987 to Today

Gold rose 0.6% in Australian dollars after poor retail figures led to concerns about the Australian economy and outlook for the currency.

Gold slipped $2 an ounce and the drop may have been triggered by news that India's central bank would consider imposing value and quantity restrictions on gold imports by banks under “extreme conditions”.

The world's biggest consumer of gold is battling a record high current account deficit. Rather than tackling the root cause of the problem, bankers are again tackling the symptom which is demand for gold. However, the anti gold stance and attempts to curb gold demand in India by the government is leading to some 25%of gold flows into India coming from irregular channels. A warning for anti gold and anti free market governments everywhere.

A further slide in the yen led to more buying of gold futures on the Tokyo Commodity Exchange (TOCOM), with the most active contract, currently December, hitting a record for the fifth consecutive day at 5,073 yen a gram – over 0.157 million yen per ounce.

The U.S. Mint reported their bullion coin sales figures for February. Interestingly, no gold eagles or gold buffaloes (1 ounce 24K) were sold but silver continued to be favoured by bullion buyers and the US Mint sold a substantial 675,500 of one ounce silver eagles.

Platinum has surged another 1.5% to $1,738/oz this morning and palladium its highest since September 2011 (766.22/oz) due to increasing concerns about supply and industrial and investor demand.

Currency Ranked Returns – In Chinese Yuan

Platinum prices have already risen by more than 12% so far in 2013, following the same advance for all of 2012.

Platinum supplies have fallen to a 13-year low as mines in South Africa, the world’s biggest producer, close and the platinum industry is in crisis due to industrial unrest, geological constraints and sharply rising costs.

Global production will drop 2.7% to 5.68 million ounces, the least since 2000, according to Barclays Plc, which raised its 2013 shortage estimate sixfold last month after Johannesburg-based Anglo American Platinum Ltd. (AMS) said it plans to idle shafts.

Anglo American Plc’s platinum unit, the largest producer, last month proposed the halt of four mine shafts that would cut about 7% of global production.

At the same time, demand from carmakers, the biggest consumer of the metal, will increase 0.5 percent in 2013, Barclays says.

Perhaps, most importantly investors are buying platinum at the fastest pace in three years and yet holdings of platinum remain very, very small.

Global production of the metal will fall as South African output drops 3.4% to a 12-year low of 4.11 million ounces, Barclays estimates.

“Supplies are very tight and it’s a serious situation,” said Mihir Worah, who manages $110 billion in real return strategy funds at Pacific Investment Management Co., in Newport Beach, California told Bloomberg.

“Not only are there issues on the supply side, we could see surprises on the demand side as well.”

Concern about supply sent platinum prices above gold in recent days for the first time since April. Platinum traded above gold from December 2008 through August 2011.


Platinum in USD – 1959 to Today (Speculative-Investor.com )

There was a 394,000 ounce shortage last year as Impala Platinum Holdings Ltd. (IMP) shut its Rustenburg mine, the world’s biggest, and police killed workers striking over pay at Lonmin Plc (LMI)’s Marikana complex.

South African producers closed nine platinum mine shafts and dismissed 3,332 workers in the second half of 2012, the Department of Mineral Resources says.

Amplats, said last week it would idle four shafts and cut 400,000 ounces of platinum output a year, about 7% of global production, to restore profitability. The company said last week it would postpone that decision for as many as 60 days to allow for government and union talks.

Holdings in exchange traded-products backed by platinum expanded 1% to a record 51.5 metric tons yesterday, data compiled by Bloomberg show.

Investors have bought more than 5 tons of platinum through exchange-traded products in January, the most in three years.

However, the 51.5 metric tonnes owned through ETPs are worth less than $3 billion and there is the potential for allocations to rise from the tiny levels of today to much higher levels in the coming months.

Platinum remains undervalued and would have to gain another 35% just to reach the record nominal high seen in March 2008 at $2,300/oz.

Longer term , platinum’s inflation adjusted 1980 high of nearly $4,000/oz seen in 1980 is likely.

In 1980, the mining industry in South Africa, where more than 80% of supply comes from, was not in crisis. China and emerging markets were not seeing the growth of huge middle classes demanding cars with catalytic converters and global currency debasement was not taking place.

Record platinum prices are also likely as platinum is an extremely rare metal and is much rarer than gold. Today, we live in a finite natural world of geological constraints and yet we are witnessing huge population growth and near infinite money creation.

Platinum and precious metals have a negative average correlation to paper assets. Precious metals are one of the very few asset classes with a positive correlation coefficient with inflation - meaning that precious metals act as a hedge against inflation.

Real diversification remains essential in order to protect and grow wealth in 2013 and in the coming years, and platinum, like silver and palladium remains compelling from a diversification point of view.

NEWS
Platinum Advances to Four-Month High Boosting Premium to Gold - Bloomberg

Indian government 'anti-gold' stance leads to quarter of gold flowing thru irregular channels - MSN

China Gold: "No one knows how much the central bank is buying"
- Reuters

China Gold Imports From Hong Kong Climb to Record on Wealth – Business Week

Treasury Surpasses Debt Limit on First Day of Ceiling’s Suspension – The Wall Street Journal

COMMENTARY
Morgan, Turk and Embry Presentations at Virtual Silver Investment Conference - SilverSeek

Why Buy Silver? – The Market Oracle

Silver Bullion and Gresham's Law Going East – Resource Investor

China Imports Record Amount Of Gold In December On Price Drop – Zero Hedge

GOLDCORE
Ireland:
14 Fitzwilliam Square
Dublin
United Kingdom:
No. 1 Cornhill
EC3V 3ND UK

IRL 
+353 (0)1 632 5010
UK 
+44 (0)203 086 9200
U.S. 
+1 (302)635 1160

Twitter, Facebook, YouTube, LinkedIn:

Linkedin - www.linkedin.com/pub/mark-o-byrne
Twitter - www.twitter.com/goldcore
Twitter - www.twitter.com/marktobyrne

Facebook - www.facebook.com/GoldCore
Youtube - www.youtube.com/GoldCoreLimited


-- Posted Wednesday, 6 February 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2014


© GoldSeek.com, Gold Seek LLC


GoldSeek.com Supports Kiva.org

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.
OilSeek.com