Bloomberg reported that platinum supplies have reached their lowest levels in 13 years as the world’s biggest producer of the metal has shut down its mines in South Africa. The increase in automobile sales has also contributed to the supply deficit.
As quoted in the market news:
Production will drop 2.7 percent to 5.68 million ounces, the least since 2000, according to Barclays Plc, which raised its 2013 shortage estimate sixfold last month after Johannesburg-based Anglo American Platinum Ltd. (AMS) said it plans to idle shafts. At the same time, demand from carmakers, the biggest consumer of the metal, will increase 0.5 percent in 2013, Barclays says. Investors are buying platinum at the fastest pace in three years.