2012 Sees Platinum Hit First Deficit Since 2004

Bloomberg reported that in 2012, platinum fell into deficit for the first time since 2004, according to Thomson Reuters GFMS. Consumption of the metal rose 1 percent, hitting 7.19 million ounces, in part due to expanded jewelry demand.

As quoted in the market news:

Platinum demand outpaced supply by 83,000 ounces in 2012, from a 803,000-ounce surplus a year earlier. Supply slumped 10 percent to 7.1 million ounces on output disruptions in top producer South Africa, GFMS said. Refined output fell 12 percent to the lowest since 2001, according to the researcher.

Platinum, down 3.1 percent to $1,491.60 an ounce this year, will trade between $1,375 and $1,750 by December and average $1,600, the report showed.

Click here to read the full Bloomberg report.