commodities specialist bullish platinum

Discussion in 'Platinum' started by finicky, May 30, 2012.

  1. finicky

    finicky Well-Known Member Silver Stacker

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    Peter McGuire was just on Business Channel remarking on Platinum, and making the claim that it is now priced at the cost of production. Also saying that the 'glut' is now 90% reduced. I haven't previously heard of any Pt glut, just passing on his words. Needless to say his sentiment is bullish

    Peter McGuire used to run a commodities warrant business and was always perky and engaging with his commentary but then slipped out of the scene, so don't know what happened there.
     
  2. goldpelican

    goldpelican Administrator Staff Member

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    Been hammered pretty hard in the last 24 hours - currently $140 AUD/oz cheaper than gold.
     
  3. nickybaby

    nickybaby Active Member Silver Stacker

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    I had a serious think about buying Pt. However not sure what would be the best way.

    Perth mint Platupus vs bullion bars (I noticed 1, 5 and 10 oz bars from pamp I think). I guess the platypus IF you can pick em up close to spot.

    Anyone else got a solid suggestion?
     
  4. finicky

    finicky Well-Known Member Silver Stacker

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    You'll never get Pt coins or bars close to spot. I'm watching these Pamp bars on GoldStackers, but they're not significantly cheaper than the limited mintage Platypus coins, so I prefer the coins.

    http://www.goldstackers.com.au/store/platinum-coins.html
     
  5. nickybaby

    nickybaby Active Member Silver Stacker

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    Ty for that. Thats the second cheepest place i could find them. The first being ABC Bullion (about 10 dollars cheeper so not a massive amount), however im not a member and thats for the pamp bars not the coins.

    I must say the goldstackers seem good value.
     
  6. goldpelican

    goldpelican Administrator Staff Member

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    Update from the Perth Mint is that ~15,000 of the 30,000 2012 Platinum Platypus have sold to date.
     
  7. Water&Food

    Water&Food New Member

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    Are there any little wiener 1/10th oz Pt bizcuits for us bottom feeders? :(
     
  8. finicky

    finicky Well-Known Member Silver Stacker

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    I guess it's not such a straight forward investment proposition after all. Should look better when rising costs against stagnant prices force the smaller miners to close shop. Platinum needs more investment demand - the Chinese and Indian jewellers were buying in the dips and apparently some Japanese investors like bars. Growing Asian prosperity might help.


    Matthey Foresees $1,600 Platinum Average


    http://www.resourceinvestor.com/2012/05/14/matthey-foresees-1600-platinum-average

    Platinum in Desperate Need of a Game Changer

    http://www.tradepreciousmetals.com/platinum-in-desperate-need-of-a-game-changer/

    Platinum plunged into surplus as inventories weigh

    David McKay | Mon, 14 May 2012
    miningmx.com] METAL inventories continued to weigh heavily on the platinum market pushing it into a 430,000 oz surplus in 2011, according to Johnson Matthey, the UK semi-fabricator and market consultancy.
    Commenting in its Platinum 2012 report, which traditionally kicks off Platinum Week in London where the world's platinum companies gather for the annual talk shop, Johnson Matthey said platinum was expected to remain in a surplus for 2012.
    As a result, the platinum price would trade in a $1,450 to $1,750/oz range in the next six months, averaging $1,600/oz. This is well below the level Neville Nicolau, Anglo Platinum CEO, said was necessary to encourage new mines investment.

    http://www.miningmx.com/news/platin...plunged-into-surplus-as-inventories-weigh.htm
     
  9. finicky

    finicky Well-Known Member Silver Stacker

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    Platinum price takes a downturn in 2012

    It seems financial instability, in Europe particularly, and surplus metal in the global markets is to blame for many analysts cutting their forecasts for the average price of platinum this year. An average only a little over $1600 an ounce was not what we had in mind at the beginning of the year.

    European car manufacturers are still subdued because of the ongoing Euro crisis, and demand less platinum then they otherwise would. It's anyone's guess when that situation may show improvement.

    On the other hand, there's demand for platinum from investors, as the interest for investing in precious metals remains high. Gold is popular, as always, but some of the enthusiasm is expected to spill over into platinum as well.

    In 2011, there was a global production surplus of platinum of about 12 percent, which is also due to a supply increase of five percent. Even
    so, the average price for the year was an all-time high. There's expected to be a slightly larger surplus in the platinum production this year.

    We should not expect the price of platinum to bounce back anytime soon, as there seems to be a stockpile of the metal sloshing around in the global markets. During the past few years, a surplus of more than 4 million ounces has accumulated in the market, considerably dampening the price so far this year. The situation is expected to continue for at least a couple of years. The proper response to this is a reduction on production, but it seems one is unlikely to follow for a while.

    For owners of a platinum ETF, the price development of the metal has not been a source for joy this far into 2012. Platinum started this year well, and as we predicted, the price shot up to over $1700 in February. But after that, it has been caught in a downward trend that doesn't look too good right now and will likely continue before it flattens out. The series of lower peaks indicates that the market is losing faith in the precious metal.

    For comparison, if production of platinum were to halt entirely, this stockpile would cover the global demand for almost a year.
    The stockpile and recycled platinum will act as a buffer against an increase in the price, even though the political unrest in southern Africa is threatening the supply side.

    We should be prepared for the platinum price development to remain moderate for the next two or three years.
    After that, it seems we might be in for a nice development, as the stockpile gradually decreases and production slows. The mining companies have no intention of investing in higher production with prices as low as around $1600 an ounce, and that may help the price increase sharply a few years from now.

    It seems that for the time being, investing in a platinum ETF is only for the long term - or for the adventurous.

    http://www.platinum-etf.net/platinum-price-takes-downturn-2012/
     
  10. Guest

    Guest Guest

    I beleive platinum will do well along with other comodoties. Though I beleive it will perform well and is a good investment, it will do nowhere near as good as the monetary metals. My take on it.
     

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