Platinum Exchange Needed to Manage Prices, Say Platinum-Industry Execs
Pan-African Capital CE Dr Iraj Abedian has called for a platinum exchange so as to bring “stability” to South Africa’s suffering platinum-mining industry.
The platinum-mining industry took one from the book of 2008 Obama at the Mining For Change 2012 seminar which took place in Johannesburg on Tuesday. Abedian says that, with no platinum exchange, “South Africa’s platinum-mining industry will continue to be characterized by boom-and-bust.”
He believes South Africa needs exchanges for all commodities in which it is the dominant supplier. His comments come amidst government, business and labour attempts to find a solution to high mining costs and low prices.
Abedian believes that without commodity exchanges, the nation’s interest, jobs and certainty will be at stake. Abedian says that South Africa has the duty to use its people to extract the nation’s resources and ship them off to transnational corporations when it is the dominant supplier.
“For supply, price and employment stability, there’s a need for a producer platform to plan for decades ahead,” he told Mining Weekly Online.
Since its introduction, the Shanghai Silver Exchange has functioned to deaden silver prices, as the volatility has been managed in a more successful manner. This same effect will take place in the platinum market, thus furthering the assurance that platinum’s price rise will take place in a more efficiently controlled manner, with the price being increased where convenient, and most likely fixed around these levels save for a year-by-year price increase.