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South African Platinum Miners’ Strike Ends

50platinum_1301179719942400000_OThe five month long South African miners’ strike has finally come to an end with a deal that will see the lowest paid miners receive an increase in pay of R1000 (around £55) a month. The strikes have meant that global output of platinum have plummeted, however the demand for the precious metal has surged. Paired together, this is set to cause physical deficit this year.

Joseph Mathunjwa, the president of the Association of Mineworkers and Construction Union (AMCU) has said that a deal on wages has been accepted and workers are to return to resume mining activity shortly.

The strikes have had huge impact on South Africa’s economy and has caused it to shrink by 0.6% in just the first quarter. The effect that the strikes have had on the country’s economy during the second quarter is under review, however preliminary statistics reveal and equally damaging blow to the economy.

Interest in platinum investment is greatly rising here in the UK. Postal Bullion’s Head of Marketing, Marcus Allsop has commented “Whilst sales of platinum have been relatively sluggish in comparison to the boom in demand for gold and silver bullions, a significant increase in platinum investment has been charted. We forecast platinum sales to continue to grow at a healthy rate and expect it to become highly desirable considering the low output of mined platinum this year”, says Marcus Allsop, Head of Marketing at Postal Bullion.

The current circumstances proves to be an ideal time to invest in platinum before platinum prices to spike in response to inevitable increased costs of production and inadequate supply to meet global demand.