This Metal Is Gearing Up For A Major Bull Run and It’s Not Gold or Silver
November 15th, 2012
Sean Brodrick: There is a metal gearing up for potentially the bull run of our lifetimes. And it’s not gold … or silver.
You may think of platinum as a jewelry metal. But nowadays, platinum is more often used as an autocatalyst — a catalytic converter — in diesel engines.
So far, scientists just haven’t found a good substitute for the metal. And that makes this metal even-more-precious in value.
For my Global Resource Hunter members, I’ve written about the labor strikes going on in South Africa. What you may not know is that South Africa supplies around 80% of the world’s platinum.
The problem is that miners in South Africa want a bigger slice of the pie — and many of the mining companies say they can’t afford to hike wages any more.
Resulting strikes hit big miners all across that nation, including Anglo American Platinum (AGPPY), Atlatsa Resources (ATL), Impala Platinum (IMPUY) and more.
Some of the miners like Impala have worked out new deals — others are seeing the conflict drag on.
Result: South Africa’s production of platinum-group metals dropped 17% in September.
Investors are figuring that all the miners in South Africa will work out a deal eventually — otherwise platinum would already have blasted off. But what if the labor actions continue to drag on?
Undersupply to Push Platinum Prices Higher