Platinum

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Unlike nearly all metals and crude oil which are found throughout the world, important platinum deposits are limited to basically two areas of the world. Naturally, platinum is produced as a by-product in several areas of the world, but this production source is very insignificant. Only South Africa and Russia have been blessed with what might be termed deposits of "industrial quantities" of the "Rich Man's Gold." And South Africa is far and away the most important of the two as it accounts for approximately 80% of the total world's annual mine production - and much more importantly 88% of the world reserves of platinum. Russia accounts for about 10%, the remainder is scattered around the world. In light of the metal's EXTREME scarcity, it is NOT surprising that more than 90% of the world's platinum production comes from only four mines: three in South Africa and one in Russia.

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Supply and Demand

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Platinum has the scarcest supply of the four main Precious Metals. Supply/demand dynamics are tight - and getting tighter every month. While the western world’s industrial demand is a function of economic growth – which obviously increases at a moderate rate – emerging countries demand for platinum has increased significantly.

 

Outlook

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Growth in platinum consumption worldwide is expected to increase tremendously. Usage in established markets is increasing and new markets are consistently being developed factors that should keep demand for platinum high and investment potential good.