BDlive reported that JP Morgan Cazenove Ltd. analysts Allan Cooke and Steve Shepherd see good things coming for the platinum and gold sectors. In terms of platinum, they now recommend that investors begin buying equities.
As quoted in the market news:
With regard to the platinum sector, the analysts say: ‘We’ve decided to adopt a more upbeat stance towards equities on an outlook for firmer rand PGM (platinum group metals) prices; an expectation that conflict at the mines will moderate post ‘strike season’ and more constructive government involvement in the mining industry.’
Previously the analysts had recommended investors buy physical platinum or platinum ETFs rather than shares but, since the platinum shares bottomed out last month, they have outperformed the rise in the platinum price as they have bounced back.
‘Until now, because of all the uncertainty, we’ve advised investors to take exposure to the PGM space via physical metal or physically-backed ETFs,’ the analysts said.
‘Our advice now is to begin buying the equities.’