Platinum soars

Press, 30 August 1986, Page 28

Platinum soars

NZPA-Reuter London The price of platinum has jumped above SUS6OO an ounce, its highest in six years, as speculators shrug off warnings that the market might drop and snapped up the precious metal. A year ago platinum cost only SUS34O an ounce. It hovered around $115599 in London on Thursday morning then New York took it to SUS6O2 (early yesterday, N.Z. time). It has risen $lOO in less than three weeks.

First, it climbed on fears that South Africa, source of more than 80 per cent of the West’s supplies, could retaliate against possible sanctions by cutting sales. But prices now are largely being decided by speculators who are lured by its volatility and the possibility of huge gains as the price swings. Analysts say platinum is replacing the speculator’s traditional favourite, gold. Gold has lost some of its lustre of two weeks ago, when it followed platinum up to reach a high of 5U5394.50 an ounce.

“The gold market is larger than platinum, there are far more above-ground stocks and South Africa only produces about half the West’s gold - all of which makes a less volatile market which is of less interest to speculators,” Nathan said. But gold is edging up again. It was fixed on Thursday at $U5386.70 an ounce from its close on Wednesday of $U5380.75.