After a month of interruptions,…
Oil prices took a hit…
Platinum made its biggest gains today since May amid investor concerns over tensions with minors in South Africa and clashes between strikers and security forces that left 44 dead last week.
With concerns about supply rising, platinum gained 1.3%, settling at $1,518.75 an ounce today, for an overall increase of 9.2% in the past week, according to Reuters.
While security forces and miners clashed last week at the Lonmin mine, other tensions among miners themselves are brewing, with strikers blocking other miners from work at the Rasimone mine owned by Royal Bafokeng Platinum.
The tension may also spread to the largest platinum mine in the country, Anglo American Platinum, where workers have also demanded higher wages. Anglo American Platinum is the world’s largest producer of platinum.
Analysts predict that the unrest will lead to a significant reduction in the current market surplus, and possibly even a deficit by next year.
Among other things, platinum is used in the auto industry for catalytic converters.
By. Charles Kennedy of OIlprice.com
Charles is a writer for Oilprice.com