Platinum award following the riots in South Africa

Peace has not yet returned to the South African mines. Since last summer, the riots between miners' unions and with guards have continued. Last Monday, another major riot took place, in which thirteen people were injured and this number continues to rise.

The miners are suspending their work because they are demanding better working conditions and higher wages. These demands have caused a disagreement to arise between the miners and their employers. These disagreements have caused an escalation between the miners and their employers. The riots have caused the platinum price to rise. The price per troy ounce (31.1 grams) is now around $1,700.

Because South Africa accounts for more than three-quarters of the entire global platinum production, it is not surprising that the riots have an effect on the platinum price. Several mines in South Africa have ceased operations and halted production. Due to last Monday's fighting, Angelo American Platinum (Amplats) has halted its operations in South Africa to prevent further escalation. Amplats is the world's largest platinum producer and has suffered losses since the first time in Amplats' existence.

Due to all the riots of recent times, the platinum price has risen above the gold price. The gold price is currently trading at its lowest level in the past 6 months. Joni Teves, a precious metals analyst at UBS, looks for an explanation for the low gold price in the positive mood on the stock markets. This has made gold less attractive as a safe haven. "Investors mainly see the positive economic signals from the US and China, and want to take advantage of them in the short term."

Despite this statement, Teves warns of a correction in the stock markets as a result of austerity measures and the struggle with the debt ceiling in the U.S. Teves: "Then investors will seek protection again. I therefore expect the gold price to be back to $1725 per troy ounce in a month's time.

Phil Streible, the commodities specialist at trading house RJO Futures in Chicago, also expects the price of the precious metal to pick up quickly. Streible also says that due to the looming currency war between Japan, Europe and the US, the US Federal will cause the dollar to weaken. Investors buy gold to protect themselves from a weak dollar.

Will this mean a resumption of the gold rally? This precious metal has been rising for at least 10 years. This will mean that gold will soon be more expensive than platinum again. Streible doesn't think so. He says that because platinum is widely used in catalytic converters for cars, the platinum price can go up even further. China also wants to reduce its pollution to the environment. This creates a greater demand for catalytic converters.

Also, the car industry will rise again in the coming year and the riots in South Africa will continue.

It makes sense that platinum is more expensive than gold. When the properties are placed side by side, platinum is much more expensive to mine and is higher quality than gold. The conductivity of platinum is also much better, which is why it is used much more often in industry.

In addition, jewelers prefer platinum to gold. Platinum jewellery wears out less quickly and stays beautiful longer, because platinum is purer white than white gold and much harder than gold. However, gold is still seen as a safe haven for investors.