Thursday May 21, 2015, 12:33pm PDT
The Bullion Desk reported that SFA Oxford’s Stephen Forrest told LPPM delegates that the current platinum price is unsustainable. He stated that a price rise was inevitable due to an “impending imbalance in the market.”
As quoted in the publication:
"This is good news for producers, Forrest added, particularly those looking to bring on new sources of supply.
His comments come at a time where many observers are wondering how producers will tackle mines that are not viable at current price levels and whether or not they have plans to reduce supply to try to get some traction going in the market.
Platinum is currently down six percent for the year at $1,149.00 per ounce. Prices are now down 50 percent since the all-time peaks hit in 2008 at $2,300 per ounce. The metal recently struck its lowest since the post-peak crash during 2008/2009 at $1,080.
The metal continues to defy the logic of a supply deficit – even during the heights of last year’s costly five-month strike that skewed annual production figures, platinum peaked at just $1,520 per ounce – it had started the year at $1,371 and closed it 12 percent lower at $1,206.