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Platinum group metals

While tightening in platinum, palladium and rhodium pricing has been experienced recently due to the global economic slowdown, Platfields remain bullish regarding prospects in the medium- to long-term for markets, and thus pricing, for the three commodities.

South African producers are collectively a primary source for all three, and are challenged on various fronts – not least in bringing timeously to account new projects – to narrow the gap between world supply and demand, and these challenges are likely to continue.

While global growth in automotive, industrial and jewellery consumption has slowed, it is likely that recovering in the medium to long term will be led by growth in emerging markets, China in particular.

Gold

With respect to gold, Platfields is similarly bullish. Economic uncertainty, such as is currently widespread in western economies, has always tended to slow de-hording of supplies above ground and to increase demand for newly-mined metal.

This scenario, together with increasing demand in strong, emerging markets such as India and China, and with declining supplies of newly-mined gold – a consequence both of the challenges facing explorers to find economically viable reserves and producers to mine profitable ounces in the face of rising costs – points to the likelihood of robust gold pricing in the medium- to long-term.