A new, South African-based platinum ETF was launched recently, and rapidly rose up the rankings to the point where it now accounts for 20 per cent of the platinum held globally by ETFs.
Why the huge demand in a weakening commodities environment. Most punters have it that the South Africans, just like everybody else, are keen to avoid the treacherous world of equities, where costs and labour issues are wreaking havoc.
Because while those issues may be bad for companies and for supply, they may well turn out to be good for the platinum price itself.
Even so, it's been notable that while demand for the new ETF (and to a lesser extent for the physical to back it) has been high, the platinum price itself has barely moved. It's outperformed gold, yes. But still it's flat at around US$1,450 an ounce.
All of which goes to show how weak the current commodities market is, and goes some way towards explaining why equities are doing even worse.
In these circumstances, it's difficult to avoid the conclusion that as far as the junior sector is concerned, the pain won't be over for a while yet. That will come as scant consolation to beaten-down investors.
But there are isolated pods of good news, such as Condor's progress at the La India gold project in Nicaragua, and Solgold's plans for its Cascabel project in Ecuador, both of which we cover below.
And interesting to note the views of Solgold's new chief executive Alan Martin on the current market conditions. He told Minesite a few days ago that good results will speak for themselves in any market. Let's hope he's right.
| 95th Minesite Forum - 11th September 2013 |
95th Minesite Forum
Wednesday 11th September 2013
The Brewery
Chiswell Street
London
EC1Y 4SD
(Nearest stations are Moorgate and Liverpool Street)
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