New Nelson Mandela Coin Could Make Platinum More Valuable
The death of an inspiring world leader doesn’t often have a direct impact on the scarcity or value of a precious metal. But that seems to be happening following the death of Nelson Mandela, according to “Mandela Platinum Coin Seen Adding 8% to Global Demand,” an article by Andre Janse van Vuuren that appeared on Bloomberg.com on February 14th.
Here are the outlines of the story . . .
- The government of South Africa is discussing the possibility of minting a platinum coin named for Nelson Mandela. If that happens, demand for the coin is expected to be immense. According to the Bloomberg.com article, as much as 8% of the total world production of the metal in the year 2014 could go into the coins.
- South Africa currently produces 70% of world’s platinum. So if the Mandela coin does go into production, it will utilize as much as 8% of the platinum that comes from the world’s largest supplier.
- Platinum prices are stable and could rise. As the Bloomberg.com article notes, “Platinum prices have gained four percent this year, after declining 11 percent in 2013. The metal traded at $1,428.25 an ounce as of 2:52 p.m. in Johannesburg.”
Will the Mandela Coin Cause Platinum Prices to Rise?
That remains to be seen. But whether platinum prices rise or hold steady, one thing is certain: Platinum is a metal to watch in year 2014 and beyond.
Related Posts:
How to Pick the Best Precious Metals Recycling Company
New Medical Technologies Spur a Boom in Platinum Use – and Platinum Recycling