25/3/2015 Billiton(BIL) would normally fall in price now being ex-div, but is now unlikely to as the demerger which will be voted on the 16/May is likely to send the price up as they will sell off their parts that give the smallest monetary returns ,namely about 6%. We are holding derivatives on this share at least up to that date as we feel in our opinion only the share will gain in price!
1/3/2015 Every year for the last three years there has been a deficit in the production of newly mined platinum. Now every one is wondering why the price of the metal is not increasing. Added to that state was the five month strike of the major producers . In the past the price would have shot up to record heights. Now the platinum price is lower than the gold price and it must be remembered platinum has so many more uses than gold.
First of all ten years there was no recovery of used platinum scrap, a state that exists today ,as old catalytic converters are turned into new usable platinum so the need of new minable platinum is then cut by a third. Added to this was the recession and the struggle in Europe to climb out into better times. Therefore the demand is not there at the moment, how ever with new uses such as fuel cells coming to the fore and less productive mines now running at a loss and major producers closing loss making shafts the scene should change in the next eighteen months. It should also be remembered to bring a mothballed shaft or a new one back to a workable position usually takes at least five years. So the chances of a rising price declining soon again would be minimal.
UPDATES IN SIDE-BAR
Platinum 2/3/2015
Mining holdings 18/3 /2015
Gold mining 25/3/2015
