Platinum Hits Lowest Point Since October 2009

The Wall Street Journal reported that platinum fell to $1,329.10 per troy ounce today, its lowest level since October 2009. The metal has fallen 14 percent so far this year. However, the weakened South African rand means that miners are not short on cash.

As quoted in the market news:

Most of mining company revenue is denominated in dollars. When the rand is falling against the dollar, the repatriated revenue translates into more rand brought into company coffers, which boosts profitability and encourages miners to maintain production.

That has implications for investors in the $4 billion market for platinum futures. A weaker rand cushions the impact of lower platinum prices on South Africa’s miners, giving them more flexibility to keep up output at a time when many traders assumed they would be forced to cut production.

Click here to read the full report from The Wall Street Journal.