Platinum Could Outperform Gold and Silver In 2013

NORTH MIAMI BEACH, Fla. - March 22, 2013 - PRLog -- According to Jeb Handwerger from goldstocktrades.com, the trend towards resource nationalism is taking a major toll on the potential supply of platinum. Simultaneously, auto sales are rebounding to levels not seen since before the credit crisis in early 2008.
Over 90% of platinum supply originates from South Africa, Zimbabwe and Russia. Zimbabwe has recently nationalized the assets of Zimplats.  This could have a major impact on potential supply and may increase interest for advance platinum assets in geopolitically stable mining jurisdictions.

This undervaluation may be due to the fact that currently the PGM market is much smaller than gold and lacks major institutional coverage.  This may change as major investors and large platinum miners look to diversify into more stable areas such as the U.S. and Canada.  

Over the long term these development stage companies could be rerated as more funds enter the arena and as the public becomes more aware of the potential supply shortfall.  Since high quality platinum projects are rare, once institutional and retail money comes into this sector it could cause a valuation jump in these assets.

Jeb Handwerger stated in a recent article that, "Despite global supply concerns, increase of resource nationalism and rising industrial and automobile demand, platinum is still undervalued compared to gold and are far below pre credit crisis highs.  This may be a short term phenomenon and over the long term PGM’s may provide a great buying opportunity and outperform gold."

Right now Jeb Handwerger believes "Platinum may be undervalued to gold as it is 30 times more scarce and has averaged historically to be at least double the price of gold.  Likewise, many of the platinum junior equities are deeply undervalued even compared to the bargain basement junior gold miners.

Read the full article and report by clicking on the link below...

http://goldstocktrades.com/blog/2013/03/13/opportunity-in...