PPLT $145.50 Down $1.62
From Barron's Focus on Funds:
Just how disruptive were South Africa’s mining strikes to global platinum production? Coupled with a few other factors, it’s enough for HSBC’s James Steel to nearly double his estimate of the globe’s supply deficit in the metal.
Steel and colleague Howard Wen upped their estimate of the deficit this morning with a few eye-opening data points. Here’s the biggest: About 45% of global platinum production was idled for for more than 22 weeks due to the strikes — that’s 60% of South Africa’s production.
With a deal in place to end the strikes, Steel and Wen forecast it’ll take six to eight weeks from here to get output back to speed, “and possible much longer.”
Now add in other market factors to see why HSBC forecasts a platinum price of $1,700 an ounce next year — a level last seen in early 2013...MORE
