Supply problems for other platinum miners good news for SLV!
http://www.miningmx.com/platinum/764360.htm
SA supply decider for 2008 platinum prices Allan Seccombe Posted: Fri, 04 Jan 2008 [miningmx.com] -- SOUTH AFRICAN platinum supply, which disappointed the market in 2007, could do so again this year and remain the key factor keeping the metal’s price strong, said GFMS chairman Philip Klapwijk.
Both metals consultancy GFMS and Johnson Matthey, the leading platinum group metal refiner, agree that problems with South African supply of platinum have resulted in the market moving to a deficit position from an anticipated surplus.
Johnson Matthey expects platinum supply in 2007 to be 135,000 oz lower at 6.66 million oz than 2006, pushing the market from last year’s small surplus to a deficit of 265,000 oz. the double disappointment“The big story continues to be the question over South African supplies, now not only the rate of growth of South African platinum production but also the sustainability,” Klapwijk told Miningmx in an interview.
“Last year, there was the double disappointment. Not only was there not growth but production declined a bit. It’s a major disappointment in light of what was expected at the beginning of 2007,” he said.
Klapwijk reckons the gold price will continue to push up from its record-breaking run this week past the 27-year high of $850/oz to $900 in coming months and then on to $1,000 at some point this year.
“We feel platinum prices are likely to go up. It’s difficult to see gold going to $900 and platinum not busting through $1,600/oz,” he said.
Platinum hit an all time high of $1,553/oz this week.
SLV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
