Gold or Platinum?
Source: miningmx, Marc Ashton (3/26/09)
". . .we believe that the significant re-pricing of gold relative to the platinum group metals complex will unwind over the medium term."
"We view the ongoing global recession, risk aversion and limited capital flows through the first half of this year as leaving the U.S. dollar exposed," Koep said.
"While we expect gold prices to perform well in the first half of the year, we believe that the significant re-pricing of gold relative to the platinum group metals complex will unwind over the medium term."
In 2008, the platinum price rose to a record $2,300 per ounce before selling off heavily late in the year to about $800/oz. Since then, the price has risen back above $1,100.
Koep said the direction of the platinum price will be driven by both the automotive production and jewellery industries.
However, a turnaround in platinum stocks' prospects was likely to be driven by supply issues: "South Africa controls about 70% of the world's production and this will give us some control of pricing down the line," said Koep.