Platinum Group Metals Price Bulletin - 9th January 2012 to 13th January 2012

Johnson Matthey London Base Prices at 0800 hrs, $/oz:

	Pt	Pd	Rh
Monday 9th January	1414	618	1375
Tuesday 10th January	1438	628	1350
Wednesday 11th January	1483	645	1350
Thursday 12th January	1506	649	1350
Friday 13th January	1490	636	1350

Platinum broke the $1,500 level for the first time in over a month this week as Eskom, South Africa’s main electricity supplier, warned of possible power shortages. A statement on the company’s website warned that the electricity network is under severe pressure and asked customers to switch off all non-essential appliances. Eskom supply around 95% of power to South Africa, and with just under 15% of its generating capacity being down for maintenance, the market is understandably nervous of supply in the short term. The risks are not perceived to be as bad as 2008, when lower coal stockpiles and flooding exacerbated the problems associated with power shortages, but the issue remains at the forefront of investors. However, the gains could not be sustained and by Friday platinum and palladium softened amid market gloom surrounding disappointing US jobs data and Christmas retail sales.

Platinum

The news about possible power shortages in South Africa sparked investor interest in platinum this week. As the price tracked upwards, investors scrambled to cover their short positions by buying the metal. The price also benefitted from good physical demand in the Far-East and Europe as well as speculative and technical buying.

Palladium

Benefitting from the uptick in platinum prices, palladium made modest gains this week.

Rhodium

Rhodium softened by a further $25 this week to bring the price to $1,350, the lowest level since May 2009. At this level, it attracted some buying interest in Europe and Asia. Iridium and ruthenium were unchanged.

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