One of the more "archane" aka indecipherable utterances of recent vintage by Jessica Cross...while under the influence of cold stale latte perhaps?
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Platinum seen in $825-$850 through year-end-trade
Platinum should stabilize in a range of $825 to $850 an ounce towards year end should not go higher if demand is to be maintained, an industry source said yesterday.
"The higher the price goes, the more the autocatalyst makers have an incentive not to use platinum," said Jessica Cross, chief executive officer of the London-based Virtual Metals Research and Consulting.
"That's where my worry comes in. What you want is a stable market," she told Reuters on the sidelines of an international gold conference.
Platinum, a white, lustrous precious metal used in jewellery and automobile catalysts, touched a peak of $942 an ounce in April on supply concern.
Trading has been volatile since amid liquidation and profit-taking and some dealers said that only prices below $850 were likely to generate demand either from the jewellery or automobile industry users.
Spot platinum was at $846/851 an ounce, compared with $857,50/$862,50 an ounce last quoted in New York.
Cross believed that tight supply would provide some support for platinum but more physical demand was likely to emerge at around $825.
"We are looking at $825 to $850 towards the end of this year.
"At that level, I think the car manufacturers have to tolerate it, because they have no choice. But the jewellery here I think will still fall off...in China," said Cross, referring to the world's largest consumer of platinum jewellery.
"(But) fundamental is very very strong. The stronger the South African rand, the more the problem because they are cutting production and they are delaying projects.
"And that is metal that the market would need in 18 months time. That's the problem," said Cross, referring to the problem faced by Angloplat, the world's largest platinum producer.
Angloplat, the world's biggest platinum producer has warned that the strong rand was likely to hurt earnings in the second half. - Reuters.
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COMMENTARY:
Is it any wonder the platinum mouthpieces are taking a page from the Central Bank Gold Basher's Playbook? Talking down platinum is about as useless as suddenly acquiring more gold resource ounces for Sons of Gwalia in the gold market.
When lackeys like Cross speak of "automotive catalysts mfgrs" reducing demand, or Chinese not wanting to put savings into hard metals, she is showing ignorance and fear, not market savvy and basic understanding of illiquidity in basic platinum catalysis chemistry.
This is one woman who should have stayed in the kitchen, chained to the sink. What an embarrassment to my gender!
The world will be lucky to keep Platinum under a $1000 per oz in the next 12-18 months, frankly. The US$ is toast and the USDX is headed below .8650
and sooner rather than later!
That massive head and shoulders top in the US$ is begging for a neckline failure of no small import! |
