<<Naked Aztecs dancing with glee around their bonfire, chanting ancient incantations>> ... yeeeessss :0)
panic is rational, and fear is a survival trait, and
best part is, should one be prone to panic, it is best top panic first :0)
uk.reuters.com
UPDATE 5-Platinum hits record high at $2,055 on panic buying
By Atul Prakash
LONDON, Feb 15 (Reuters) - Platinum surged nearly 3 percent to hit an historic high for the successive 12th day on Friday, with acute power problems in top producer South Africa forcing investors and consumers to hastily snap up the metal.
Spot metal <XPT=> hit a high of $2,055/2,065 an ounce at 1242 GMT, against $1,997/2,007 in New York late on Thursday. It has jumped 34 percent this year on the top of 37 percent gains recorded in 2007.
"It's panic, panic, panic. If you are a platinum consumer, you are not going to sleep at night," said Robin Bhar, metals analyst at UBS Investment Bank.
"The price move shows you the unprecedented nature of the market. People can see actual physical shortages somewhere down the road and prices moving away from them. It's not a case of just speculation. There is genuine demand coming through."
South Africa, which accounts for 80 percent of global platinum supply, has been hard hit by power cuts since early January, forcing mines to shut for five days last month.
South Africa's state power firm Eskom said on Thursday it would increase coal purchases and buy back electricity from those industrial users able to reduce consumption under a plan to address crippling shortages. [ID:nL14251539]
Analysts say the platinum deficit could widen to 400,000 to 500,000 ounces by the end of 2008, compared with about 265,000 ounces in 2007. The market had a surplus of 65,000 ounces in 2006 following seven successive years of deficits.
"Platinum supplies are heavily dependent on this market, and the delicate power supply situation as well as concerns about mine safety leave mine output extremely susceptible to potential disruptions," Barclays Capital said.
"The market is set to retain its deficit, further eroding the low level of above ground inventories thus further buoying platinum prices," it said in a report.
Impala Platinum (IMPJ.J: Quote, Profile, Research), the world's No. 2 producer, on Thursday forecast "very tight market conditions", while No. 1 producer Anglo Platinum (AMSJ.J: Quote, Profile, Research) said this week the power problem alone would cut output by 120,000 ounces in 2008.
Angloplat said it had shut it Polokwane smelter for weeks of repairs. [ID:nL15536559]
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