Normally one would think that a producer would always be happy to see the product price climbing. According to AngloPlat and Impala Platinum this is not the case…
"Trevor Raymond, head of investor relations at AngloPlat, said the world’s largest platinum producer was opposed to against the launch of a platinum as the fund would put upward pressure on prices and would have a negative impact on jewellery demand."
"Bob Gilmour, investor relations manager at Impala Platinum, the world’s second-largest producer, said it was important to retain a sense of perspective about ZKB’s plans as they did not involve a large amount of platinum but cautioned that the timing of the fund’s launch was poor."
"Given the current market conditions, it's probably not the opportune time to launch a product like this because it's just going to put further upward pressure on the price," said Bob Gilmour, manager of investor relations.
"In the longer term, this is not what you want for demand because it causes attempts at substitution."
Producers have been worried about spikes in platinum prices since that increases the threat of possible substitutions being developed for the metal.
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