A BIG supply hit is on the way for platinum, as the world’s fourth-largest platinum miner announces it will suspend operations in South Africa:
Aquarius Platinum said it would suspend operations at its Marikana operations in South Africa, citing low platinum prices, and said trading conditions in the industry were expected to remain difficult in the short to medium term.
Aquarius Platinum, the world’s fourth-largest primary platinum producer, said it wanted to preserve the ore reserves at the mine until extraction was economically feasible.
A huge hat tip to Dr. Evil for contributing to this piece, who also notes that while this news may not matter in the short-term, it is pretty bullish long-term.
Platinum is quite cheap relative to gold at the moment, and since plummeting to $1400, it’s been holding the line. This is one to keep an eye on as supply continues to evaporate.
Low prices will eventually be the cure for platinum’s low prices. (via StockCharts.com)