Commodities: Tough time ahead for SA miners
Platinum, rather than gold, may be where investors will get the best returns over the next few years
Mining industry insiders believe platinum and fluorspar offer the greatest potential for price recovery based on long-term trends. But at the same time, several other commodities will struggle to make further gains. Despite recent predictions from Metals Focus and GFMS of firmer gold prices over the next year, Cadiz Corporate Solutions director of mining Peter Major says bullion has mainly benefited from US President Donald Trump’s expansionary statements and is unlikely to rise much further from current levels of about US$1,250/oz. His view is backed by the latest Heraeus Precious Metals weekly report. Heraeus analysts say though gold gained 8.4% in the first quarter of this year, it is struggling to break through the $1,260/oz resistance level. Major was addressing a Joburg Indaba discussion, ahead of the main conference in June, on trends in commodities and how SA mining can benefit from a price upturn. He said oil prices, at about $50-$55/barrel, are close to their 100-year mean...
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