Why Platinum Will Become Scarce and Pricey: Examining Two Factors
- Shams ul Zoha
- January 10, 2023
- 7:16 pm
WHAT YOU SHOULD KNOW
- South Africa is facing a major energy crisis and that Nornickel may not meet production targets for Platinum in 2023 due to the conflict in Ukraine.
- industrial demand for Platinum is increasing, leading to higher prices.
Platinum is not as common as other precious metals, making it relatively rare. It has been observed that the majority of mining for this material is conducted in South Africa and Russia.
Despite the fact that Platinum is already a rare metal, there are two primary factors that could cause its scarcity to increase, leading to a dramatic increase in its value.
Currently, South Africa is facing a major energy crisis due to a lack of electricity, restricted refining capabilities, and frequent damage to furnaces caused by power outages.
Due to the rise in global inflation, production costs have become more expensive, making the situation even worse.
Nornickel, the leading mining operator in Russia, has predicted that they may not meet their 2023 production targets for platinum, despite Russia being responsible for 12% of the world’s total platinum supply. There are numerous reasons for this, particularly the conflict in Ukraine.
Even with the recent events, there is still an increase in industrial demand for Platinum that will lead to higher prices.
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