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Bloomberg reported today that Morgan Stanley predicts the worldwide platinum deficit, augmented by over three month long miner strikes in South Africa, could last four years before it gets corrected.
Bloomberg reported Wednesday that Morgan Stanley predicts the worldwide platinum deficit, augmented by over three month long miner strikes in South Africa, could last four years before it gets corrected. Auto producers and jewelry makers will consume more platinum than is mined for the third year in a row, according to the publication. Additionally, Bloomberg notes a Standard Bank Plc report stated that any price rally may not last since buyers in China would be expected to turn away at higher costs.
As quoted in the market news:
Futures will average $1,639 an ounce this year, or 14 percent more than yesterday’s close of $1,437.80 on the New York Mercantile Exchange, Morgan Stanley predicted in an April 8 report. The bank said the production deficit will last at least until 2018, fueled by rising demand for the metal in catalytic converters, which reduce auto emissions.