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Platinum price today south africa

Started by Admin, Oct 04, 2023, 12:43 PM

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As a financial instrument, platinum is considered a rather unconventional asset and many websites claim it is low-liquid. However, the exclusivity of this precious and highly sought-after metal cannot be overemphasized, which is provided by a stable demand in engineering, science and jewelry. The specifics of trading platinum do not deter many investors who use derivative instruments for diversification and speculation.

Unlike silver, platinum is not as dependent on the price of gold, although it shows some coherence with these assets. In turn, such a derivative metal, like palladium, is highly dependent on the prices of its "older brother". These two chemical elements are largely interchangeable from the point of physics. This concerns not only the production but also the financial side of the issue. For many hedgers, it is not a problem to use one asset instead of the other. The cost of platinum has been higher than the price of palladium by several times for a long time. However, at the beginning of the 21st century, manufacturers faced problems in their production and consumers decided to switch to a cheaper analogue in the form of palladium. In this regard, the demand for palladium spurred its growth in the stock markets to the level of platinum.

Because platinum price varies, a reasonable investor follows platinum spot price today and historical charts that show platinum spot price for that particular day and historical prices dating back 20 years. Spot Price is the current price at which a particular product can be bought or sold at a specified time and place. In financial markets, a spot transaction is a transaction that is to be settled no later than the second working day from the moment of its conclusion. This being said, weekends and holidays are not taken into account when determining the delivery time. In other words, this is the price that is assigned for any asset or commodity if one wants to buy it today. Suppose that an investor bought an ounce of platinum at the spot rate $963.00. This means that the seller must transfer an ounce of platinum to the investor's account no later than the second working day from the moment of concluding the transaction. The investor, in turn, is obliged to transfer to the seller $963.00 at the same time. Violation of the terms of delivery by one of the parties will entail penalties stipulated in the contract.

The spot price for platinum is subject to manipulation. Regulators, such as the Commodity Futures Trading Commission (CFTC), simply have to be on guard against manipulation in metal futures, especially in the closest month to deliveries that directly affect prices in many, if not all, retail transactions with metal in the States.

More and more platinum is entering the market and platinum resources are constantly accumulating but no one knows how big they are. There are, however, guesses that we are talking about significant reserves. Some people figured it out in 2014: despite a five-month strike in the mines of South Africa, the price of platinum then did not rise. By the way, South Africa supplies about three-quarters of the world's supply of platinum. The market decided that South Africa could produce 150 tons of platinum per year again as in 2011, compared to 130 tons in 2014-15. This news and market expectations temporarily put pressure on the price. But the bottom line is that during the strikes the platinum mining companies in South Africa did not conduct active investment activities and because of this, they will not be able to quickly restore the production. Therefore, even in the best scenario, if South Africa can increase the platinum production by 20 tons and reach the level of production in 2011, there will still be a deficit in the market.

If you are interested in platinum price today in South Africa, there are multiple ways you can check that online. Online tables show the platinum price in ounce, kilogram and gram of platinum rate in South Africa. However, remember that these rates vary from those of local shops in South Africa and you should confirm the rates from other sources before making any real transactions.