There is likely more to come in a Platinum rally driven by supply and demand factors plus investment interest. Platinum has been one of the top-performing commodities so far this year
The improved macro picture is likely to continue to lift fabrication demand expectations, while ongoing supply concerns ranging from power and labor issues in South Africa to resource nationalism in other parts of PGMs-producing Africa will keep output growth subdued.
A strike is occurring at Impala Platinum’s Rustenburg mine, which provided some 15% of global production in the last fiscal year.
The combination of improving demand expectations and the potential for more supply-side disappointments could very well generate a Platinum deficit in 2013, which along with the cost side of the equation should continue to attract investment and lift prices higher.
"We expect platinum to trade north of $2,000 sometime in 2013.” Nymex April platinum traded as high as $1,638.70 overnight, its strongest level since Nov. 16.
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