New York (Platts)--26Dec2007

Platinum prices have soared to new heights on NYMEX Wednesday in a new
wave of investor buying, after making new records almost every day last week
to close out the week at a record $1,536.30/oz on December 21.
During a quiet day of trading, the January 2008 platinum contract on the
NYMEX rose $13.10 to reach a settlement price of $1,549.30/oz, bouncing off
the day's low of $1,532.00/oz. The April contract, which has become the active
nearby traded month, rose $12.90 to settle at $1,543.00/oz.
Traders are bracing for further gains in platinum, based on its own
strong fundamentals and also because the industrial metal is being supported
by the positive trends in gold prices.
Platinum is now set to conclude a record year, with price gains of more
than $400. This is a phenomenal increase, which is due partly on speculative
trading with a foundation in strong fundamentals.
While industrial demand for platinum remains strong and Chinese jewelry
demand has not fallen off considerably, supply from South African mines has
fallen short of expectations and Russian export levels have been in doubt. As
a result, there has been a projected deficit in 2007, which will undoubtedly
carry over into 2008. This could lead to a continuation of the bull market
next year, according to market analysts.
--Ovid Abrams; ovid_abrams@platts.com