Russia, South Africa to Become the OPEC of Platinum?

Platinum and palladium are not performing as well as expected this year, and major producers Russia and South Africa have decided to do something about it. The two countries will meet next month to discuss their mutual interest in the white metals, and the possibility of bolstering prices. One idea is to use central banks to increase platinum and palladium purchases.

It’s a scenario that Mineweb’s Kip Keen recently likened to the formation of the Organization of the Petroleum Exporting Countries (OPEC), noting that despite legal ambiguities surrounding the oil producers’ arrangement, OPEC has “long got away with” what it set out to do.

Could it work? Most signs point to “no,” although there are some positives inherent to the idea.

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