Platinum Bulls Look Past Price Slump to Bet on Supply Crunch
- Coronation, Investec expect mine cutbacks to boost prices
- Southern African production expected to drop by half by 2030
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Two of South Africa’s biggest fund managers are going against the tide in the platinum market by betting on higher prices.
The metal fell into a bear market this month and U.S. money managers have cut bullish bets for 10 straight weeks, the longest stretch in at least a decade. That hasn’t dented Coronation Asset Management and Investec Asset Management’s view that a long-term supply crunch in South Africa, which produces 70 percent the world’s platinum, will boost prices.