Hedge funds up bullish platinum, palladium bets near record
Large scale futures speculators and PGM investors in physically-backed exchange traded funds are taking wildly different views of the outlook for the metals.
Anglo Platinum, the world's number one platinum producer, suffered more than 80 safety-related work stoppages including 12 fatalities, that resulted in lower output and a drop in profits of over 60% in 2011.
South Africa's ruling party, the African National Congress, appears to be moving away from nationalization of the mining industry to reassure foreign investors but is considering new taxes and "targeted interventions" in the sector, particularly platinum mines.
Treasure hunters are working to recover cargo on a World War II merchant ship, which was sunk by German u-boats just off Boston, that was carrying 71.4 tons of platinum, estimated to be worth $2.5 to $3 billion.
Standard Bank maintains that while platinum prices over the long term are bolstered by a difficult supply outlook, over the short term, its prospects aren't as good.
South African platinum group metal production was down 2.7 percent for the three months ended November 2011 compared with the three months ended August 2011.