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Platinum Group Metals
The platinum price has seen modest strengthening during recent months, ending 2009 57% higher than it began at US$1 466/oz. The weak industrial and automotive demand was counteracted by the strong Chinese jewellery demand which provided good support for the price. Palladium and rhodium prices rose similarly during 2009, both doubling to US$402/oz and US$2 500/oz respectively.
This shows early support for the Platfields view that the medium to long-term prospects are good. South African producers are collectively a primary source of PGMs and are challenged on various fronts – not least in bringing to account new projects – to narrow the gap between world supply and demand, and these challenges are likely to continue.
| Supply | 2008 | 2009 |
| South Africa | 4,515 | 4,530 |
| Russia | 805 | 785 |
| Others | 620 | 605 |
| Total | 5,940 | 5,920 |
| Gross demand | ||
| Autocatalyst | 3,655 | 2,320 |
| Jewellery | 2,060 | 3,010 |
| Investment | 555 | 660 |
| Others | 1,720 | 1,140 |
| Total gross demand | 7,990 | 7,130 |
| Recycling | (1,830) | (1,405) |
| Total net demand | 6,160 | 5,725 |
| Movements in stock | (220) | 285 |
Source: Johnson Matthey
| Supply | 2008 | 2009 |
| South Africa | 2,430 | 2,370 |
| Russia | 3,660 | 3,635 |
| Others | 1,220 | 1,095 |
| Total | 7,310 | 7,100 |
| Gross demand | ||
| Autocatalyst | 4,465 | 4,050 |
| Jewellery | 985 | 815 |
| Investment | 420 | 625 |
| Others | 2,420 | 2,280 |
| Total gross demand | 8,290 | 7,770 |
| Recycling | (1,615) | (1,430) |
| Total net demand | 6,675 | 6,340 |
| Movements in stock | 635 | 760 |
Source: Johnson Matthey
Gold
Platfields remains bullish about the prospects for gold. Gold continues to fill its traditional role as an investment of choice in troubled times. This scenario, juxtaposed with slower de-hording of above-ground supplies and declining flows 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.
Market Prices
- Platinum:
$/oz 1618.0000 - Gold:
$/oz 1725.02 - R/$:7.52
- R/€:9.90
- R/£:11.90
- ¥/R:10.18
