Europe’s recovery drives the platinum bounce

September 23, 2013

LONDON (Sept 23)  Platinum has bounced off June’s three-year low of $1,300 an ounce, and should rise further, says Tatyana Shumsky in Barron’s.

Supply is tight, with the market heading for a big deficit this year, says Tom Kendall of Credit Suisse. More strikes in South Africa, the biggest producer, are always a possibility, while the outlook for demand is improving thanks to Europe’s industrial recovery.

Platinum is a key ingredient in catalytic converters for diesel-burning cars, a market Europe dominates. Morgan Stanley sees prices averaging $1,600 in the fourth quarter.

Silver Phoenix Twitter                 Silver Phoenix on Facebook