Platinum Prices Rising On Impaired Supply

PRLog (Press Release) – Feb 13, 2008 – Platinum prices are continuing to hit new highs on global exchanges, due to supply shortages.

The metal hit a record high for the ninth consecutive trading day yesterday, climbing from $1,933 to close at $1,936 on the New York Stock Exchange.

Price inflation for platinum on the day was driven by the Anglo Platinun, the world's largest producer of the metal, announcing that its projected output for the year was down as a result of power shortages.

The high prices were also propelled by investors buying record high platinum future on the JSE.

Peter Tse, a dealer at Scotia Mocatta, told the Reuters news agency: "It's the same news, the same old news which has driven platinum prices to move higher.

"Basically there's no resistance. With a relatively small and thin market, platinum price can drive anywhere, unlike gold and silver in which you see more participants and more liquidity."

Total production of platinum across the sector is now expected to stand at around 2.4 million ounces this year.