December 8, 2003
Platinum Price Gains; Breaks Likely in 2004
Platinum jewelry manufacturers and retailers could benefit from a break in the sky-high platinum prices currently dominating the market, say analysts. According to a report in the Dec. 8 Wall Street Journal, a platinum price correction is likely in 2004 given the surge in the metal's per-ounce rate rampage.
However, should the world market remain in a deficit next year, says the report, further gains are likely and the downside could be limited.
The new analysis comes after record high prices of $796.50 were recorded late last week, prompting one major producer to reduce its production plans.
Angloplats, as Anglo American Platinum is known, said it would produce 2.9 million ounces of platinum in 2006, down from 3.4 million ounces it planned previously. The company's expansion plans have been hurt by the South African rand's strength against the dollar, says WSJ.
During the past year, platinum spot prices rose 32%, despite data showing slower global demand from jewelrymakers, a major user of the precious metal.
by Michael Thompson