For many months, a trend towards resource nationalism has become apparent, and which is taking a major toll on the potential supply of platinum (PTM) where over 90% comes from South Africa, Zimbabwe and Russia. These are far from safe-mining jurisdictions. Simultaneously, auto sales are rebounding to levels not seen since before the credit crisis in early 2008. Despite global-supply concerns, increase of resource nationalism and rising industrial and automobile demand, platinum is still undervalued compared to gold (GLD).
The platinum price is still far below pre-credit crisis highs, while gold and silver (SLV) are almost double 2007 highs. This may be a short-term phenomenon and over the long term PGM's may provide a great buying opportunity and catch up to gold (IAU) and silver (AGQ). Over 90% of platinum (PPLT) supply originates from South Africa, Zimbabwe and Russia. Zimbabwe has recently nationalized the assets of Zimplats. This could have a major impact on potential supply and may increase interest for advance platinum assets in geopolitically stable mining jurisdictions.
Working URL: https://seekingalpha.com/article/1295111-demand-far-outstripping-supply-for-undervalued-platinum-and-palladium
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