Platinum up 22% Since Mid-August
What a difference a black swan can make.
Spot platinum is up 22% from mid-August after the Lonmin massacre and fears that South Africa, responsible for over 80% of the world’s platinum production, would be slowed.
Bernanke QE3 announcement late last week added another lift to the metal.
Before last month’s tragic news, the metal was trading at $1,393/oz. Currently it trading over $1,700/oz, , a price level not seen since late February.
As Bloomberg noted, this is platinum’s biggest rally in 25 years.
Work has stopped at six platinum mines and one gold mine in South Africa. The government considers the mining sector critical and the police are cracking down on striking miners.