Platinum ETFs are on track for their largest one-moth inflow in a year and a half following violence and deaths at a South African mine, according to a report Friday.
Platinum-backed ETFs saw their metal holdings rise by 88,821 ounces, or $133.2 million, according to a Reuters report.
Production at Lonmin’s Marikana mine has been suspended in the wake of worker protests that turned violent and resulted in the deaths of 44 people. [Platinum ETF Rises on Labor Unrest]
An ETF listed in the U.S., ETFS Physical Platinum Shares (NYSEArca: PPLT), has raised its holdings by 58,805 ounces this month, according to the article.
“If the supply problems persist, then it is likely that investors will continue to build their positions. However, it is a situation that needs to be monitored very closely, and I suspect the flows could turn quickly once it appears supply is ready to come back onstream,” Nick Brooks, head of research at ETF Securities, told Reuters.
“If this goes on for another month and a half, notionally you have a much tighter market, particularly if you have the ETFs buying into it as well,” added Citigroup analyst David Wilson.
ETFS Physical Platinum Shares
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