Shortage of platinum after Japan buying spree
Arizona Coin Collector
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5704941.ece
Shortage of platinum after Japan buying spree
Families are rushing to invest in the metal as
faith in the Government's ability to handle the
economic crisis dwindles
Leo Lewis, Asia Business Correspondent
February 11, 2009
Tokyo bullion dealers are reporting an unprecedented
drought of platinum ingots and coins, blaming the
economic downturn and dwindling faith in the Government
for a rush by middle-class Japanese families to buy
precious metal.
With dealers turning away would-be platinum customers
for lack of stock, retail investment interest is
turning towards the even rarer Canadian Maple Leaf
palladium coin.
Some dealers are predicting volatile palladium prices
as Japanese investors compete with the car industry,
palladium's main industrial buyer.
A government think tank is predicting that Japan's
economy shrank by an annualised 10.59 per cent in the
final quarter of 2008 - rather than the 5.14 per cent
contraction they were predicting four weeks ago.
As if this was not enough for concern, there is a
growing sense that the Japanese Government is not
responding adequately to the economic crisis.
Jonathan Allum, chief Japan strategist at KBC
Securities, is among a number of analysts with deep
scepticism over the plans laid out by Kaoru Yosano,
the Economics Minister.
"Some of Mr Yosano's previously expressed views do
not wholly inspire confidence. This is a man who
said on January 28 that a rise in the consumption
tax could 'lay the foundations for increased
consumption'," he said in a note to investors
yesterday.
Although precious metals dealers are thriving,
Tiffany's said yesterday that it would cut prices in
its Japanese stores by 9 per cent - a reflection of
the stronger yen and dire times for the mainstream
jewellery industry.
Platinum sales at Tanaka Kikinzoku, the largest
Japanese bullion dealer, have soared by 430 per
cent over the past 12 months.
The World Gold Council's latest figures suggest
that total Japanese gold bullion sales for
investment purposes soared by 61 per cent last
year. Platinum is popular because the price is
about 50 per cent lower than it was this time
last year.
..