Another positive and important catalyst for platinum is that more of the metal is expected to be consumed this year compared to how much producers are able to mine, meaning demand will outpace supply.
“Consumption will outpace supply by 120,000 ounces this year, the fifth straight year of deficit, according to a March 9 forecast by the World Platinum Investment Council, created by the six leading producers of the metal to stimulate investor demand,” according to Bloomberg. “Total platinum supply is forecast by the World Platinum organization to drop 4 percent to 7.66 million ounces in 2017 as South Africa, which accounts for 70 percent of world output, closes unprofitable operations and resources from its other mines get depleted.”
South Africa is the world’s largest platinum producer and the second-largest producer of palladium, another platinum group metal.
Moreover, unlike gold, palladium, platinum and silver see much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
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