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These Insiders Say They’re Shocked By Today’s Low Platinum PricesDave Forest Unexpected news in the platinum market this week. With key consumer Japan saying that its buying surged to a record in 2015. Japan’s biggest bullion seller, Tanaka Kikinzoku Kogyo, reported that its platinum sales more than tripled during the past year. Rising to an all-time high of 537,946 ounces, from just 149,272 ounces in 2014. That comes as platinum prices fell over 25% last year, this week hitting the lowest level since 2008 — at near $800 per ounce. The big jump in buying of course makes a lot of sense. At historically low prices, buyers should be enticed to snap up supply. And this week one of the world’s biggest insiders in the platinum industry said they’re shocked that such discount buying isn’t happening more. The group is Johnson Matthey, one of the foremost monitors of the global platinum market. With the group’s manager for market research, Peter Duncan, telling an investment industry conference on Wednesday that something appears out of whack in the platinum market right now. Duncan told conference attendees that Johnson Matthey sees the 2015 deficit in platinum supply and demand growing bigger than expected. With the group now pegging the supply shortfall for the last year at 702,000 ounces — up from a previous forecast of 652,000 ounces. This comes as lower prices are causing a surge in investment demand, like that seen in Japan. And as recycling of the metal falls. Duncan also noted that the deficit situation is likely to persist in 2016. Saying that the coming year will be the fifth year in a row that the platinum market runs a fundamental shortfall. The most interesting point from Duncan’s talk was his thoughts on prices.. which he admitted is baffling the experts at Johnson Matthey right now. “We continue to be surprised by the lack of price response,” he said, referring to the fact that ongoing supply shortfalls should be lifting prices. That suggests the fundamentals are setting up for a recovery in this market. Temporary price distortions do happen, but when supply exceeds demand there must eventually be a response. Here’s to setting things straight, ### Dave Forest The information provided in this newsletter is based on the independent research of Dave Forest and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade any securities or commodities named herein. Information contained in this newsletter is obtained from sources believed to be reliable, but is in no way assured. All materials and related graphics provided in this newsletter and any other materials which are referenced herein are provided “as is” without warranty of any kind, either express or implied. No assurance of any kind is implied or possible where projections of future conditions are attempted. Readers using the information contained herein are solely responsible for verifying the accuracy thereof and for their own actions and investment decisions. Dave Forest does not make any representations about the suitability of the information delivered in this newsletter or any other materials that are referenced herein for any purpose whatsoever. The information contained in this newsletter does not constitute investment advice and Dave Forest is not registered with any securities regulatory authority to provide investment advice. Readers are cautioned to consult with a qualified registered securities adviser prior to making any investment decisions. The information contained in this newsletter has not been reviewed or authorized by any of the companies mentioned herein. To subscribe to Pierce Points please click here: www.piercepoints.com Copyright © 2016 Pierce Points 321gold Ltd |
