The platinum price hit a record high today as it reached the $1 915 an ounce mark. This all largely due to the current electricity problems being faced in South Africa. Platinum and other metal production in the mineral rich country are being hampered after the supply of electricity has become limited to the mines. Efforts have been made to restore some electricity to the mines but this seems to be a short term measure as the future outlook for the electricity supply in South Africa looks bleak.

The price of gold has also been rising and it is edging ever closer to the $1 000 an ounce mark. Some analysts predict that it is just a matter of time before gold reaches the $1 000 mark and platinum reaches $2 000 an ounce.

Platinum which is used in jewellery and autocatalysts, has risen 25% in price so far this year, on the top of 37% gains last year. Power shortages have disrupted mining in South Africa, triggering worries about a bigger market deficit for the year. Ango Platinum which is the worlds largest platinum producer will be forced to decrease production largely due to the power problems being faced in their mines productions in South Africa.

It seems like everyday, the outlook is getting worse and worse, for not only the local economy but the global economy due to the electricity problems in South Africa. It is amazing how these electricity problems are affecting everything and one wonders that, all this could have been avoided a long time ago!

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