IS THIS A GOOD TIME TO BUY PLATINUM?

At current prices, there is blood in the streets in the platinum market. The largest South African mining companies (80% of global supply) are operating at a loss, and are selling off assets.

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J. Pierpont Morgan said, “Buy when there is blood in the streets.” The notorious financier took his own advice. He became fabulously wealthy by buying assets when others were selling.*


What is JPMorgan looking to buy during this “platinum fire sale?”
PLATINUM MINES. (Mission Accomplished Sept. 2015)* JPMorgan Cazenove’s long-term forecasts have not altered from previous forecasts.

The Rustenburg assets employ 16 000 workers in three shafts and supporting infrastructure, which include concentrating plants and a chrome recovery plant.

Sept. 9, 2015: Sibanye Gold Ltd. purchased the Rustenburg platinum shafts from Anglo American Platinum (sale price: 4.5 billion rand plus shares).

RhynePlatinumCurrencySmall

The economies of the world are in uncharted territory. No one knows when the music will stop. However, we all know a debt crisis is coming here. During financial panics, two things always disappear: LIQUIDITY and PRECIOUS METALS.

Shortages of gold, silver and platinum showed up big-time in 2008. During the financial crisis, gold went to $1,000/oz for the first time (March 14, 2008). On the same day, platinum jumped to $2,107/oz. Leading up to the crash, both metals had doubled in only two years because of acute, physical shortages.

Jan. 5, 2006:  GOLD $525/oz
Jan. 3, 2006:  PLATINUM $982/oz

For years, the price of one ounce of platinum was two times the price of one ounce of gold. Over the decade, the average premium for platinum was 39% over gold. Why? Because the supply of platinum is so small compared to gold.

•     Platinum is ten times more rare than gold.
•     The entire platinum market is only 7 million ounces.
•     Platinum is a strategic metal; essential in high-tech.
•     In the 2008 crisis, platinum jumped to $2,300/oz.

BLOOD IS IN THE STREETS

Today, the platinum spot price is $860, $211 under gold. When platinum is selling at a discount to gold, it is a BUY SIGNAL! (The bare cost to mine platinum is $1,100/oz.).

Recommended: Canadian 1 oz Platinum Maple Leaf. 

We have analyzed the fundamentals of actual platinum supply and global demand: Platinum Buy Signal: 62% below high

By Denise Rhyne

END NOTES

On December 8, 2015, Anglo-American (world’s largest platinum producer) announced restructuring will reduce its assets by about 60%. The world’s fifth largest miner will lay off almost two thirds of its employees (85,000).

* Sibanye Gold Ltd is Africa’s largest gold producer. July 6, 2014: Prior to joining Sibanye, James Wellsted (Sibanye spokesman, Sr. V.P) was a South African mining analyst at JPMorgan (Qatar Tribune). On April 8, 2014, James Wellsted said, “…there’s a lot of potential to replicate what we’ve done with the Sibanye assets in the platinum sector” (“referring to purchasing more platinum mines, a precious metal that is in short supply;” Metallix). On Aug. 1, 2014, Business Day Live reported: “Bolstering its platinum plans is the recruitment of Steve Shepherd, a highly regarded analyst who retired in June from JPMorgan Cazenove to help it find the right assets.” On May 27, 2015, BizNews.com reported: “Sibanye still keen to buy Anglo Platinum mines.”

JPMorgan (1 Fricker Rd, Illovo, Johannesburg, 2196, South Africa) / “Sibanye Gold Ltd” (11 Feb. 2013) previously known as “GFIMSA” (GFI Mining South Africa Proprietary Ltd., 2002) owned by “Gold Fields Ltd.” Gold Fields originally incorporated as “East Driefontein Gold Mining Co Ltd” 3 May 1968 and subsequently changed its name to “Driefontein Consolidated Ltd. Operations that comprise “Sibanye Gold” were acquired by Gold Fields through a series of transactions principally in 1998 and 1999. As disclosed in the Pre-listing Statement, Gold Fields transferred its South African gold mining assets including Beatrix operation, Driefontein operation, and Lloof operation (going concerns to GFIMSA with effect from Feb. 23, 2004).” SEC Form 6K. JPMorgan clients: Anglo American Platinum Ltd, Aquarius Platinum Ltd, Impala Platinum Holdings Ltd, Lonmin PLC, Northam Platinum Ltd, Royal Bafokeng Platinum Ltd. SIBANYE (“We are one”) language spoken by Nimrod (son of Cush) at Babel.

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