Platinum Market Update (March 15, 2012)

By Michelle Smith — Exclusive to Platinum Investing News

On March 13, platinum prices overtook gold prices, allowing the two metals to return to their traditional relationship, whereby platinum is the more expensive metal. Platinum’s price increase is attributed to improving economic conditions and supply concerns.

Impala Platinum (OTC Pink:IMPUY,LSE:IPLA,ADR:IMPUY) announced that the government of Zimbabwe has agreed in principle with the company’s plan to transfer a 51 percent stake of Zimplats operations to native investors in compliance with indigenization laws. An agreement has not been reached regarding timing or valuation other than that the shares will be at appropriate value.

CEO David Brown described the discussions as cordial. “I believe that we have found common ground and that we have a workable solution as the Government understands that recognition of appropriate value is essential,” he said.

Safety stoppages in South Africa have been weighing on the platinum industry and contributing to falling production. Reuters says the Labour Court has suspended a safety stoppage order against Northam Platinum Ltd. (OTC Pink:NMPNY,FRA:NOC). This rare move could open the door for other miners to use the judicial system as a reprieve from these disruptions, thereby limiting the losses that such companies experience.

Securities Disclosure: I, Michelle Smith, do not hold equity interests in any of the companies mentioned in this article.