What is up with platinum?
*Reuters, by Atul Prakash, February 14, 2008
“Soaring Platinum Can’t Go Higher? Guess Again
Anyone who thought platinum prices couldn’t go higher after spiking 60 percent in six months got a rude shock on Thursday when the metal hit $2,025 an ounce.
Analysts say that even at this record level — up 32 percent in three weeks and double the price of two years ago — platinum is a good opportunity as strong fundamentals and a power crisis in top producer South Africa will rule for months to come.
“Right now the ball is in the bulls’ court and they can run with it and that’s what they are doing. They can continue driving prices until this whole move runs out of steam,” David Holmes, director of metals sales at Dresdner Kleinwort, said.
Spot platinum surged to a record high for the 11th straight day, rising as high as $2,025 an ounce on Thursday from its close of $1,985/1,995 in New York late on Wednesday.
An acute power crisis in top producer South Africa, which accounts for 80 percent of platinum’s global supply, has been hitting production, while nearly two-thirds of the metal demand is highly price inelastic and continuously growing.”
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