Platinum price puzzles
By GCRU Gold News on Tuesday, February 24 2015, 23:01 - Permalink
So in platinum, all is not what it seems on the surface. We may be in a period of substantial supply deficit, but as long as there remains considerable stockpiles and metal held in the ETFs, assuming the estimates are largely correct, there appears to be no real shortage in the global industrial marketplace. So predictions of good price increases this year because of the perceived supply/demand balance may just not come about.
However, if gold were to rise significantly, undoubtedly platinum would follow the gold price upwards. The platinum price seems unlikely to increase significantly on what have been seen as strong basic supply/demand fundamentals as long as consumers can continue to draw on the massive amount of stockpiled material to mitigate any shortfall in demand. If the basic supply deficit continues and the stockpiles are run down significantly, then maybe platinum will start to move upwards on its own, but it could still be some time before this might actually happen.