For those of you who keep an eye on the daily changes in spot prices of precious metals. You'll see the same thing I have seen. A five percent increase in platinum in the last 5 days. Significant? When that five percent equates to an increase of over sixty-dollars per ounce, you better believe that is of significance.
What is the cause of such an increase you might ask. Spot prices much like Stock prices are not directly related to overall production, or actual market impact. The price is more closely related to expectations.
A strike at the South African Mine of the 3rd largest Platinum producing company in the world, Lonmin, has caused unexpected violence between the strikers and South African Police. On Thursday, 34 strikers at the Marikana Platinum mine lost their lives due ot the violence..
Lonmin claims it has so far lost six days of mined production, or about 15,000 ounces of Platinum because of this violence. Experts are saying that the amount of platinum lost, for now, will not stop the manufacturing purposes of platinum. But, if this continues, this could have quite a long-term impact and it is because of this expected long-term impact that we have seen a sudden increase in price of platinum.
What is the cause of such an increase you might ask. Spot prices much like Stock prices are not directly related to overall production, or actual market impact. The price is more closely related to expectations.
A strike at the South African Mine of the 3rd largest Platinum producing company in the world, Lonmin, has caused unexpected violence between the strikers and South African Police. On Thursday, 34 strikers at the Marikana Platinum mine lost their lives due ot the violence..
Lonmin claims it has so far lost six days of mined production, or about 15,000 ounces of Platinum because of this violence. Experts are saying that the amount of platinum lost, for now, will not stop the manufacturing purposes of platinum. But, if this continues, this could have quite a long-term impact and it is because of this expected long-term impact that we have seen a sudden increase in price of platinum.
1 comment:
Very interesting perspective. Glad I read it.
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