David Franklin: Is Platinum the New Gold?

Summary: In an interview with The Metals Report, Sprott Asset Management strategist David Franklin says increasing demand from auto manufacturers in U.S. and China, as well as tightening supplies, are making platinum and palladium attractive investments. He explains that the bottom for gold, silver and PGM metals was reached in June, as factors like write-downs by large gold companies coupled with news of a reduction in stimulus by the Fed was factored in. Many big names like Soros and Paulson sold gold holdings. Platinum and palladium constitute the smallest share of the precious metals market. Supplies are much more limited than gold, with the primary deposits in South Africa being plagued by labor issues. South Africa supplies 70% of the world’s platinum. Read more…