Investors Cowed by Platinum Supply Uncertainties

Reuters reported that one reason investors are shying away from platinum is that it’s uncertain how much of the metal exists above ground “or more importantly who holds it.”

As quoted in the market news:

‘If you start pitching through the historic data, it begins to look like … the demand supply balances in the 2000s weren’t as tight as the data suggests,’ Citigroup strategist David Wilson said.

Figures from refiner Johnson Matthey, for years considered a reference measure of supply and demand fundamentals, put the platinum market in deficit for 11 out of 14 years in the period spanning 2000 to 2013. The cumulative shortfall for the whole period was 1.525 million ounces worth around $1.94 billion.

But analysts’ estimates of total above-ground stocks range from four million to 20 million ounces, worth anything between $5 billion and $25 billion, raising the question of how and when that inventory was built up.

Click here to read the full Reuters report.