How is South Africa Losing Money on its Dominance in Platinum?

Benjamin Cox |


Benjamin begins by discussing how only South Africa can lose money while having such dominance in the platinum market. They, along with Russia, control most of the world’s platinum, yet still operate at a loss and do not economically exploit their monopoly despite the world’s fundamental need for platinum. Most of this is because of their “use it or lose it” policy. If they were able to ration the global supply of platinum, their profits would increase, likely without the international community caring. Benjamin calls on South Africa to drop their “use it or lose it” policy, artificially increase demand, and watch profits soar. This will lead to the country being able to afford things like power upgrades and higher wages for mine workers.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AEXE Aim Exploration Inc 0.01 -0.00 -6.25 302,519

Comments

Emerging Growth

New Age Farm Inc.

New Age Farm Inc is engaged in the development of the agriculture based business in Langley, British Columbia.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…