There is currently a deficit of 360,800 ounces this year, and it’s an improvement over the 412,400 ounce deficit in 2007. Mine supply is set to continue to fall in the wake of the South African power crisis, and as long as the shortage is in place, prices will remain high. Two-thirds of the world’s platinum supply hails from South Africa. The major mines are still limited to 90% power.
Jon A. Nones for Resource Investor reports that platinum futures for July delivery are set at $2,034.90 per ounce. The record was set in March at $2,308.80.
The reason there is no platinum ETF is because there is such a shortage of the metal that it isn’t very liquid.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.