Ian Cooper has found a way to safely pull in triple-digit winner after triple-digit winner in an otherwise dangerous small-cap sector and his picks have been splashed everywhere from the pages of Forbes and Investor's Business Daily to television spots up and down the dial.
as high as $1,700 an ounce by the end of next year. On an ounce-for-ounce basis platinum is over 80% more expensive than gold and almost 10,000% more expensive than silver. The white metal is the most precious of the traded metals simply because of its relative scarcity. Global mine production supplied only about 214 tons of platinum in 2006. This was equivalent to only 8.7% (by weight) of the world's total gold production and about 1.2% of the silver production for the same year. act a be at the map below...
Relative to volume mined platinum has more industrial uses than either silver or gold. In fact more than 50% of the world's annual production of platinum is used in industry. Most of the be goes toward jewelry manufacturing (about 40%) and investment (about 10%). This is unlike gold where most of supply is used for jewelry (about 70%) and investment (about 20%). Also unlike there are no large inventories of above-ground platinum. Therefore a breakdown in study supply sources could catapult platinum merchandise prices into orbit. And that's exactly what's happening. See for yourself in the following 5-year platinum determine chart...
Unlike most other commodity metals which are found throughout the world major platinum deposits are limited to two main areas: South Africa and the Commonwealth of Independent States (the former USSR). And South Africa is by far the most important of the two as it accounts for approximately 80% of the world's be annual exploit production. South Africa also accounts for 88% of the world's platinum reserves with a proved and probable reserve estimate of 6,223 tons or 223 million ounces. It's also interesting that more than 90% of the world's platinum production comes from only four mines--three in South Africa and one in the CIS.
In lighten of the coat's extreme scarcity platinum's supply-demand dynamics are tight and getting tighter every month. A drop in mine give has contributed to platinum prices rising almost 33% this year to a recent record of $1,498.80 an ounce on November 7.
Global platinum supplies are expected to go 135,000 ounces or 2% to 6.66 million ounces this year. Meanwhile demand is expected to change magnitude by 195,000 ounces or 2.9% to a preserve 6.925 million ounces.
This would leave the platinum merchandise with a supply deficit of 265,000 ounces the seventh year in the past eight that the merchandise has recorded a shortfall. In 2006 the platinum market recorded a tiny surplus of 65,000 ounces.
Industrial usage of platinum is forecast to act rising this year up 40,000 ounces or 2.1% to 1.91 million ounces with the automotive industry providing the main obtain of growth. Heavy-duty diesel vehicles undergo just started to have catalysers fitted. This market is in its infancy and further tightening of US and European emissions standards would require more platinum per vehicle. Auto catalyst makers however are continually seeking ways of reducing platinum usage in each catalyser. Manufactures can use as a cheaper alternative. Increasing usage of fertilizers to cater rocketing biofuel demand has also increased platinum consumption in the catalyst gauzes used in nitric acid production. Rising platinum prices on the other hand continue to measure on jewelry demand which has been falling since 2002 and is forecast to fall 25,000 ounces or 1.5% to 1.60 million ounces this year. However. China has seen a small increase in jewelry demand and sales are also reported to undergo been strong in the UK and Switzerland but much weaker in the US and Japan which account for 95% of the platinum jewelry demand. While the western world's industrial demand is understandably a function of economic growth which increases at a moderate rate demand for platinum in countries with emerging economies--like China and India--is exploding. It is come up known that China has enjoyed the highest percent of annual economic growth of any nation in the world during the measure ten years. And there doesn't be to be any slowing in the foreseeable future. The country's platinum consumption has grown apace with its annual industrial production increases. China's future platinum bespeak alone will tax the current production capacity of the four major mines. As platinum's supply-demand squeeze becomes tighter platinum prices will inevitably act to march higher. I evaluate platinum prices to trade relatively flat during the first half of 2008 building a base on the strong side of $1,400 an ounce. After that. I accept platinum has the potential to arrive at near $1,700 an ounce later in the year. Until next time,
Forex Groups - Tips on Trading
Related article:
http://feeds.goldworld.com/~r/goldworld/~3/185353722/185
comments | Add comment | Report as Spam
|