Will it make any difference to gold and silver whichever of these appalling presidential candidates gets elected to govern what still remains the world’s most powerful nation? Obama has accelerated the decline in the nation’s superpower capability, arguably Bill Clinton’s legacy, and the erosion is set to continue with his wife in office but would […]
Shortly after the South African miners strike began last year causing the country’s platinum producers to close down for five months we read that above ground stocks would run out during May, some two to three months into the dispute.
Striking mine workers at South Africa’s platinum mines could tempt investors to dive into the metal, expecting prices to rise as shortages kick in.
Those looking objectively at the platinum stock situation may have second thoughts before committing themselves.
Although no longer the largest gold producer in the world, South Africa still retains its status as the foremost producer of platinum. As the political and labor problems in South Africa still remain unresolved it is likely that production of platinum will remain on course for a third year of declining production. Because of the uncertainty surrounding these issues significant investment in 2013 by the mining companies was not forthcoming and it is unlikely that 2014 will see any improvement.
Historically, platinum has mostly traded at a premium over gold, in fact only three times in the last twenty five years has the position been reversed. However back in July last year the metal was priced at near enough $160 under gold, the most it has ever been. This despite the ongoing labor problems in South Africa that continue to this day.
Platinum has seen a yo yo 2011. After scaling the heights of $1900 an oz it ended the year at little over $1400 an oz.
Johnson Matthey, a multinational metal and chemical company, fixes the spot price for Ruthenium twice a day.
In practice the price is a starting point for trading large amounts of the metal, usually 100 troy ounces minimum. For smaller amounts you must expect to pay more than the quoted price.
The start of 2012 has seen the price of Iridium sustain its advance to US$1000 -$1100 an ounce reached early in 2011 after a meteoric rise beginning at $400 an oz in Feb 2010.
With national economies worldwide facing such an uncertain future, now is the time to learn how and why investment in gold and other precious metals can maintain the purchasing value of your capital.
All the Western nations, now including India and China, the two most populous, are printing more and more banknotes that are not backed by a tangible redeemable asset, which used to be gold!