(Adds quotes from other analyst, details)
By Siddesh Mayenkar
HYDERABAD, India Aug 25 (Reuters) – Prices of platinum
could rise in 2013 as markets digest limited supply from major
producer South Africa, analysts said at an industry conference
on Saturday, with platinum trading at a premium over gold.
South Africa accounts for 80 percent of platinum supply and
its producers have seen output fall sharply over the last year
because of industrial action and a flurry of government-imposed
safety stoppages, sending prices to their highest level in more
than three months.
Major producers may start shutting down mines on high labour
and energy costs, Jeremy East, global head of metals trading
with Standard Chartered Bank, said on the sidelines of the India
International Gold Convention.
“Fundamentally we are bullish on platinum as we feel South
African mines will have to start closing production… so supply
will be reduced and market will be more balanced,” East said.
Gold prices could climb to $1,750 an ounce, up 5 percent
from current levels, by December on euro zone concerns and
expected stimulus plans, East said.
PREMIUM TO GOLD
Continued…
