Platinum miners have warned that new proposals to introduce an exchange-traded fund (ETF) would put further pressure on the precious metal's production.
The world's largest miners of platinum have pointed out that the platinum market is currently close to tipping point, with demand close to supply.
But plans for an ETF could push demand way ahead of production levels, because such a fund requires an equal amount of metal stored in a vault for every ounce of ETF platinum bought.
Sandy Wood, commercial director of Anglo Platinum, said that this would put even more pressure on producers in an already tight market.
This view was confirmed by Impala Platinum's marketing director, Derek Engelbrecht, who told Business Report: "We would probably be against an ETF."
Other top platinum miners have also opposed the plans, despite the fact that ETFs are used in both the gold and silver markets. -source