BLBG:Platinum Widens Spread Over Gold as Supply Concern Drives Rally
Platinum climbed for a third day, widening its spread over gold to the biggest since August 2011, on concern that global supply will drop this year just as a recovery boosts industrial demand.
Platinum for immediate delivery gained as much as 0.7 percent to $1,733.25 an ounce and was at $1,726.25 at 12:08 p.m. in Singapore. Spot gold was little changed at $1,644.90 an ounce. The spread between the two metals widened to as much as $88.75 today, the biggest since August 2011, according to data compiled by Bloomberg.
Platinum has climbed 12 percent this year, while gold lost 1.8 percent, after Anglo American Platinum Ltd. said it plans to idle shafts in South Africa, the world’s biggest producer. Zimbabwe, the third-biggest producer in 2011, repossessed about 69,000 acres of land from Zimplats Holdings Ltd., Mines Minister Obert Mpofu said on Feb. 12. The metal, which rose 9.9 percent last year, is mainly used in autocatalysts.
“It’s supply concern that’s driving platinum,” said Gavin Wendt, a director at Mine Life Pty. “There’s enough news to keep driving the platinum price higher.”
Platinum production will drop 2.7 percent to 5.68 million ounces this year, the least since 2000, as demand from carmakers increases 0.5 percent, Barclays Plc estimates. The International Monetary Fund said last month that global growth may accelerate to 3.5 percent in 2013 from 3.2 percent last year.
One ounce of platinum bought as many as 1.0539 ounces of gold today, the most since August 2011, according to data compiled by Bloomberg. Holdings in exchange-traded products backed by the metal climbed to a record 51.77 metric tons on Feb. 8, according to data compiled by Bloomberg.
Gold for April delivery was little changed at $1,644.90 an ounce on the Comex in New York. Most-active futures were little changed at 30,554 rupees per 10 grams ($1,762.25 an ounce) on the Multi Commodity Exchange of India Ltd. Financial markets in China are closed this week for the Lunar New Year break.
Spot silver advanced 0.2 percent to $30.8475 an ounce, while palladium for immediate delivery was little changed at $768.60 an ounce after dropping 0.5 percent to $764.30.
To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
