• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 4 hours https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 2 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 23 hours Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 16 hours Tonight Twitter took down Trump's personal account permanently. Trump responded on the POTUS account.
  • 22 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 4 hours Researchers Are Harvesting Precious Metals From Industrial Waste
  • 2 days Pollster Frank Luntz released a poll today showing 90% of those that voted for Trump in November would vote for him again.
  • 21 hours CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 2 days Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
  • 2 days a In 2020, we produced and delivered half a million cars.
  • 2 days Trump Supporters Just Handed a Huge Propaganda Victory to China
  • 2 days ICE Engines Hear to Stay Regardless of War Against
  • 2 days Minerals, Mining and Industrial Ecology
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Media Missing The Point On Platinum Supply And Demand Situation

It's interesting the spin major media puts on events in the resource sector.

Like this week -- when one of the big discussion points was a report from the World Platinum Investment Council (WPIC) discussing the current state of the platinum market, as well as supply and demand fundamentals for the metal going forward.

Most news services seized on one fact: that the WPIC is forecasting a platinum supply deficit of 445,000 ounces for 2015. And that's considerably lower than the 785,000-ounce deficit the market saw during 2014. Related: Does Selling Oil From The Strategic Petroleum Reserve Make Sense?

There was thus a lot of talk about the supply deficit "shrinking," and the market becoming more in balance this year.

But that interpretation completely ignored one of the other findings from the WPIC's report.

The thing is, it was a certainty that the 2015 platinum supply deficit would be lower than last year. Because 2014's platinum production was all but halted for five months by labor strikes in South Africa. Related: The Oil Bust Is Great For Business Here

The fact that the deficit is lower this year is therefore not indicative of any longer-term trend. But the scale of this year's deficit, by contrast, tells us a lot.

The WPIC's new forecast of a 445,000-ounce deficit is in fact an incredibly shocking figure. Because of how it compares to supply forecasts that the group put out just four months ago -- when the deficit was seen being much lower than this week's report would suggest.

Back in May, the WPIC released research pegging the 2015 supply deficit at just 190,000 ounces. Meaning that the group's new forecast of a 445,000-ounce deficit has jumped by 134 percent in a matter of months. Related: More Iranian Oil Could Hit The Market Now That Iran Deal Is Assured

The reason? Platinum buying by exchange traded funds (ETFs) that hold physical platinum -- which WPIC noted were net buyers of 60,000 ounces of platinum during Q2.

The group notes that the sharp increase in investment buying is almost single-handedly responsible for the big shift in supply-demand fundamentals seen this year. And that's a story that is critical to keep an eye on.

Here's to getting the point,

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News