It is clear that the time to dedicate resources to explore for new platinum mines and deposits outside South Africa has come. With a coming deficit market, new platinum projects in Canada patiently await inevitable courting by international platinum investors and producers.
Strikes at South African mines have coincided with the sudden resignation of Aquarius Platinum's CEO. Stuart Murray has not offered any comments on his motives. But it seems clear that the situation in the country's mining sector is escalating.
Gold edged down today due to dollar strength and profit taking as speculators and some investors booked profits on 16% price gains from this year’s low. Gold continues to see smart money diversification.
The near-term in Europe might be darker than many currently anticipate (as reflected in January’s asset-buying euphoria) if we take note of certain underlying trends. An injection of liquidity has not resulted in an injection of loans into the region’s faltering economy, for example.
Platinum pricing has been strongly linked to the economy, and the economic slowdown caused by the sovereign debt crisis in the West hit platinum harder than gold. However a closer look at the demand and supply could give a more sanguine picture.
Volatility continued in unabated fashion in the precious metals markets overnight as gold and silver each gave up more than 2% in value on the heels of a firming US dollar. Thursday's gains in gold largely evaporated.
Precious metals dealings opened their first August session with mixed results this morning; with some components of the complex headed lower and some in the opposite direction. Platinum and palladium were the early stand-out gainers.
New York spot precious metals dealings opened with relatively small losses on this last day of June, and appeared to be in search of fresh drivers to countervail ebbing interest and participation by speculators and professionals.
It is unlikely that platinum will experience another sales flood in the short term - despite Japan's situation and other such pressures. Platinum and palladium prices are dependent on industrial demand and their prices follow global economy cycles.