How to Pick the Winning Mining Stocks to Profit From the Platinum
While many people have been looking to gold over the last few years, another precious metal that may also benefit is platinum. As many people know, supply and demand are key when it comes to the pricing of any precious metals, including platinum. Mining stocks that are producing platinum in excess of demand will put downward pressure on prices. Conversely, if demand was stable for platinum and mining stocks were unable to fulfill demand, the deficit would be good news for prices.
An interesting report by Johnson Matthey stated that it’s highly likely that the platinum market will be in a deficit. Such a scenario would certainly be bullish for platinum mining stocks, which aren’t affected by any operational issues. Jonathan Butler, the author of the report, states that a significant reduction in the supply of platinum and the recycling of catalytic converters is going to move the platinum market into a deficit.