On July 29, palladium reached $825.90 per ounce, and platinum climbed to $1,783.40 per ounce.
“The South African coal strike seems to be having a positive impact on the platinum group metals,” said Ed Martin, president of Hunter Wise Commodities, a precious metals wholesale dealer based in Las Vegas.
According to various news reports, some 30,000 coal-mine workers in South Africa have gone on strike seeking a pay increase. This raises questions surrounding the availability of electricity needed for mining far below the ground in South Africa, the world’s largest producer of platinum and one of the two largest palladium producers.
Threat of strikes against mining companies themselves further support the spike in platinum group metals (PGMs).
“Unions in South Africa are threatening strikes at the world’s biggest palladium and platinum producers,” Martin said. “Because of supply concerns, the demand is heightened.”
Gold’s current market boom influences all the precious metals, according to Martin, because gold generally tends to lead the PGMs. Demand from the auto sector also affects PGMs – Japan’s industrial output is finally recovering from its spring earthquake and tsunami, and Ford saw a profitable second quarter.
According to Hunter Wise Commodities, now is the time to invest in palladium and platinum by becoming a precious metals retailer. The Las Vegas wholesale metal dealer specializes in the purchase and sale of palladium and platinum, as well as gold and silver. More information about becoming an independent PGMs retailer with Hunter Wise Commodities can be found at http://www.hwcom.com/
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About Hunter Wise Commodities
Hunter Wise Commodities, LLC is an affiliate of Hunter Wise Financial Group, LLC. The wholesale dealer specializes in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. The company’s corporate headquarters are in Las Vegas, Nev., with additional offices in Irvine, Calif., and London, England. For more information about the company, visit http://www.hwcom.com/