Platinum Spikes Following Report Of People Shot Outside Amplats South African Mine

Tyler Durden's picture

The tender (and doomed to fail) truce obtained several months ago between miners and platinum mining companies is formally over, following reports from Johanesburg that at least five workers have been shot outside of the the Rusetenberg mine by security officials during a standoff between rival unions.

  • FIVE WORKERS AT AMPLATS MINE SHOT OUTSIDE RUSTENBURG: ENCA
  • 5 SOUTH AFRICAN WORKERS SHOT BY MINES SECURITY, ENCA REPORTS
  • S. AFRICA POLICE HAVE RECIEVED REPORTS MINERS WERE SHOT :AMS SJ
  • S. AFRICA POLICE: DEATHS, INJURIES AT AMPLATS MINE UNCO

Reuters adds: "Johannesburg - At least five workers were shot on Monday after security guards at an Anglo American Platinum mine in Rustenburg opened fire following clashes between rival union factions, eNCA television said. The station said it believed one worker at the Siphumelele shaft had been killed."

Platinum spikes immediately on the news:

As for shares of Amplats, imagine the inverse.

  • AMPLATS FALLS AS MUCH AS 4.6% AFTER REPORTS OF MINE SHOOTING

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flacon's picture

I wouldn't classify a $10 move to be "spike". But yeah I have a little platinum and it has held up better than gold and silver. 

Pinto Currency's picture

 

Platinum runs first (before silver and gold) when oncoming consumer goods price inflation approaches after initial monetary inflation by central banks.  Suggest the chatter about mining strikes is not the proximate cause of the ongoing price increase in platinum and palladium.

http://www.safehaven.com/article/7291/platinum-dark-horse-bright-future

According to a study by Wainwright Economics, a Boston-based investment research and strategy firm, platinum is the leading indicator of inflation. While gold and silver lead inflation by 12 months, platinum leads by 16 months. This was confirmed in the current bull market as the rise in platinum prices started in 1999, while gold and silver's rise began in 2001.

 

Commodity or index     Lead Time (months)      Correlation Coefficient

Platinum                                 16                               0.762

Silver                                     14                               0.76

Gold                                       12                               0.726  

CRB                                         4                               0.489

Raw industrial materials               4                               0.45

Crude oil (Brent)                       -1 (lag)                       0.541

 

               
philipat's picture

It was 1725 last week!!

Motorhead's picture

Rival union factions, bitchez!

TahoeBilly2012's picture

Metals are cocked and loaded...

Motorhead's picture

Oh, shit, not another pumping opportunity for King World News.

new game's picture

say what! blood in the streets-BUY! BUY!

Sudden Debt's picture

unless it's poor people's blood... that's a non event.

 

nmewn's picture

Wait, they make ammo outside of the US? ;-)

Sudden Debt's picture

yeah, but you have to put the bullets in a gun and fire it yourself...

NO DRONES!! HAHAHAHAHAHA!!

THAT'S LIKE USING A CELL PHONE THAT HASN'T GOT TOUCHSCREEN!!!

stoneage stuff...

TrumpXVI's picture

You're depressing me, man.  I remember the good old days when the U.S. was flooded with cheap mil. surplus South African manufactured 5.56mm Nato ammo.

new game's picture

russian wolf 7.62x39 @99/1000 through a colt sporter-oh the days...

nmewn's picture

I hear ya.

I liked SD's sardonic comment, the mine owners need to get with the modern program of "conflict resolution" and use Hellfires fired from drones...lol.

new game's picture

humor is therapy, good for awhile; hold that thought...

Sudden Debt's picture

SO WHO IS WILLING TO TAKE ONE FOR THE GOLDBUG TEAM?!?!

They Tried to Steal My Gold's picture

China and India will scoop up at these prices - so will Russia...

slightlyskeptical's picture

Short gold, long platinum.

Sudden Debt's picture

You... Me....

Can't be friends.

 

stateside's picture

What's the problem?  Just print more platinum like they do gold and silver.  See, supply problem solved.

stateside

Sudden Debt's picture

According to sun tzu, every battle is won before it is fought...

I have no idea what that means...

unless... like in kindergarden... everybody's a winner... even if you get capped...

Irelevant's picture

The move in the metals in the last week is interesting. However, I`ve visited some coin shops and a local bank (here - Europe) and the premium for spot is 20%, unbelievable. That has never happened before on the raids. The spot price would drop as well. Even APMEX has  the price per oz at 1750$ if you pay with a credit card. I don`t know what was up with the raid, as this is self defeating and the banks know it. As you drive down the price, demand for phiz will go up. They also know it`s levered 100 to 1, or 1000 to 1. So I really find it peculiar they are smacking the price.

Seeing all the poor folks around here, going to the pawn shop, selling family jewelry to buy food, I`m thinking maybe they are smacking the price to by the phiz at a discount from the pauperized population. Maybe there are more of us selling right now than buying. I really can`t see another motive behind the raids, except for the cheap buying of gold from the depressed masses that have to sell it in order to survive.

Furthermore, if this little scenario were to be correct, as a population, in Europe, in the long run, we are fucked to high heavens. We will become slave labor for the Russians and the Chinese.

orangegeek's picture

And gold and silver are not following.

 

http://bullandbearmash.com/chart/silver-weekly-drops-13/

 

Silver remains below USD30.

Irelevant's picture

The price of paper, traded for paper, on exchanges that are involved in massive fraud, is irrelevant. Where can I buy physical silver for under $30/ounce? Please advise!

NoWayJose's picture

Lot of dealers underwater on anything they bought since last summer. The plus is getting wider in spot plus, because they would have to sell at a loss. That will stabilize as inventories shrink or get replenished. Competitors who don't have old inventory will be getting Eagles cheaper now. Shop around.

Irelevant's picture

Can you name the dealers that sell for under $30/ounce. Phiz that is. Because I`m at a loss finding them.

TahoeBilly2012's picture

I can't be the only one who noticed that when gold has a mini waterfall decline over the last 10 or so years, it launchs 20%-30%  sometime over the next 6 months....everytime.

NoWayJose's picture

When the SHTF in the U.S. they surely do not want the citizens to be better armed than the 'security forces' . The only hope at that point would be if the security forces could call in drones.

Bunga Bunga's picture

In the US that wouldn't be even news.

Lord Of Finance's picture

Yeah. Would be best to leave the gold chain and watch behind when heading out with $5,000 gold prices.

No gold watch/chain for me. Not my style.

 

Last spring I took vacation in Nevada and did some gold sifting. Got nothin, but some others found some. This fad will catch on in a couple years from now. Soon we could be hearing about wild west Nevada gold rush shootouts and robberies. I hope not. But I would be carrying a permit to conceal, if I were gold sifting in two years.

Cupid Stunt's picture

  Johanesburg..  at least five workers have been shot outside of the the Rusetenberg mine by Oscar Pistorius during a standoff between rival unions.

MillionDollarBoner_'s picture

This is just JZ and his cronies sorting out their pensions.

Amplats will be found guilty of whatever it takes to cancel their licence.

Same going on in South America. Ironically this is the chickens coming home to roost - banksters will only lend to their chums so the only way for LDCs to get the infrastructure built is this little cocktease wheeze.

Same as it ever was...