PLATINUM PRICES JUMP WITH PRODUCTION DEFICIT ANNOUNCEMENT
Platinum and Palladium prices are on the rise following a shocking announcement made by Johnson Matthey. Its ‘Platinum 2012, Interim Review’ reveals that global Platinum production is estimated to fall 10 percent for the year, which sets the market for a deficit of the metal rather than the normal surplus. The continuous miner strikes in South Africa, where approximately 90 percent of the world’s Platinum is produced, have subjected the Precious Metals market to this outcome. The outlook for future demand is optimistic. Johnson Matthey’s Publications Manager Jonathan Butler explained, “Overall, although we're seeing weakness in European markets continuing in terms of vehicles, technologies actually are driving Platinum usage up and we see continuing growth coming from places like India which have very strong diesel components to their car markets. We've seen growth this year, we expect further growth next year.”
The consumer confidence in the United States is at its highest level in five years with noticeable recovery seen in the unemployment rate and housing market. With the fiscal cliff looming, the market is in search for safety with their assets. Depending on how the fiscal cliff is resolved, it will impact the U.S. economy with either a healthy recovery or possible recession. “The fiscal cliff is being priced in because it’s the biggest risk facing the market right now,” Priya Misra, head of U.S. rates strategy at Bank of America Merrill Lynch in New York, said. “Without the cliff we would grow 2 to 2.25 percent.”
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,729.00, Down $3.90.
- Silver, $32.61, Up $0.03.
- Platinum, $1,585.50, Up $19.00.
- Palladium, $637.00, Up $27.90.
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