Two top fund managers take a bullish stance on platinum prices
Shrinking platinum supply for years did little to lift prices, but now two big fund managers say a supply crunch is looming and it will push prices up
Two of SA’s biggest fund managers are going against the tide in the platinum market by betting on higher prices. The metal fell into a bear market this month and US money managers cut bullish bets for 10 weeks running, the longest stretch in at least a decade. But hasn’t dented Coronation Asset Management and Investec Asset Management’s view that a long-term supply crunch in SA, which produces 70% platinum, will boost prices. With the price falling 40% in the past five years, South African producers slashed investment in future output to stay in business. Consultant SFA Oxford and miner Northam Platinum expect supply from southern Africa’s existing mines to halve by 2030. Stockpiles held by investors, miners and end users, which with recycled metal helped meet demand in years of production shortfalls, are also shrinking. John Biccard, a fund manager at Investec in Cape Town, said: "A supply cliff is approaching so we see substantial deficits in the years ahead, and much higher plati...
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