Monumental Property Group, a family office specializing in deep value investment opportunities, says current economic conditions are perfect for an increase in platinum prices from historically undervalued levels.
South Africa Platinum mines, which are responsible for more than 70 percent of the world’s supply, have been shut down by the coronavirus, limiting supply. Platinum is trading at a 15-year low, while the spread between gold and platinum is the highest it has been in 30 years.
Platinum is currently trading at around $770 per ounce compared with more than $1,700 per ounce for gold. Production price of platinum is approximately $1,100 per ounce, which is significantly higher than the current market price. Also, there has been a near halt in the economy including automotive manufacturers, which use 40 percent of the platinum supply for catalytic converters.
Ike Roberts of Monumental Property Group said, “Platinum is a great way to bet on the car indust
