Do South African Supply Issues Make Platinum ETFs a Good Buy?

NASDAQ reported that South African supply problems are making it likely that platinum will see a strong price increase in the coming weeks; that means it may be a good time to invest in platinum ETFs.

As quoted in the market news:

Apart from the improvement in broader global economic outlook, rising demand from auto-manufactures and supply problems in South Africa are pushing the platinum price up.

For the past couple of years, there have been increasing labor problems in South Africa, resulting in frequent supply disruptions. Earlier this year, Anglo American Platinum, the world’s largest producer of platinum had to suspend operations for a day after labor violence at one of the mines.

Labor problems at the Anglo American mines may escalate again the company reveals the outcome of talks with the government and unions about restructuring plans that may involve cutting up to 14,000 jobs and mothballing two mines in South Africa.

Click here to read the full NASDAQ report.