Platinum prices jumped to a 2-month high today reaching $2,160 an ounce on concern supplies may fall short of demand as production declines in South Africa, the world’s biggest producer of the metal.
Power failures have hampered mine output in South Africa, and production in the country may drop 10 to 15% this year.
Consumption is expected to exceed production by at least 400,000 ounces this year and the most precious of precious metals may test the $3,000 an ounce level within the next few months.
The metal, used in jewelry and pollution-control devices in cars, climbed 1.4% this week. Platinum prices have more than doubled in the past three years as demand outpaced supply.