Industry observers also believe that platinum companies have overextended operations during the commodities boom in prior years and have suffered from an oversupplied market as a result.

“A plunging South African currency is prodding miners to heap the metal into the global market. The rand has been plumbing successive all-time lows versus the U.S. dollar since late last year, and now trades at just under 16 to the greenback. Because miners’ expenses are largely paid in the local currency and their sales made in U.S. dollars, a weaker rand means better returns for platinum sold abroad,” according to Barron’s.

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