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Platinum Overtakes Gold




Platinum overtook gold for the first time in 10 months.

This is the first major surprise on the precious metals market in 2013. There are 2 main reasons for the rise.

Partly it's due to the news about the possible issue of a trillion dollar coin (trillion-dollar-platinum-coin-issue-proposed.htm) by the Federal Reserve on order to pay part of the US debt.

On the other side, one can observe a return of the South African platinum problems - according to Nasdaq.com.

The Anglo American Platinum LTd. (AMS.JO), the World's largest platinum producer affirmed that it will suspend production at several of their mines in South AFrica. They produce 40 % of the World's platinum and the suspension of the mining at their South African mines will implicate a loss of 14,000 jobs and a drop of 20 % in annual production (which equals about 400,000 troy ounces).

These two factors (the closing of the mines and the trillion dollar coin rumours) are the underlying reasons for the uproar of platinum in early January 2013.

It remains to be seen whether this will implicate a long term increase of platinum's price or if this will have been a short-lived bullish trend.

Platinum reached a height of 1705.00 US $ per ounce according to Kitco's charts, while Gold is slowly edging up, already having surpassed the 1,690 $ line.





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