Thursday, February 14, 2013

Platinum ....


Platinum has been widely known as “white gold” and “rich man’s gold” for a long time. The value of platinum is historically higher than gold but in the past few years, market speculation and global economic imbalances have contributed to the higher trading value of gold when compared to platinum. In eventuality however, platinum will again have a higher price than gold.
Today, Platinum is still considered far more valuable than gold due to these facts:

The annual supply of platinum is around 130 tons. This is about 6% of annual gold production and less than 1% of silver production. Platinum is among the rarest metal in Earth's crust and has the lowest availability in un-mined reserves and it is nonetheless a very precious commodity.
Relative to volume mined, platinum has many more industrial uses than either silver or gold. In fact, more than 50% of yearly production of platinum has been consumed in contrast with 85% of global gold demand being used for store-of-value adornment.
The supply/demand dynamics of platinum is very tight and getting tighter over time as emerging economies of the world increase their demand for this rare element. In the long run, supply will be unable to meet the demand and this will result in long term appreciation of Platinum price in the spot market.


While no one should speculate that platinum price is to double or triple within the next few years, platinum investment is more conservative and a safer strategy compared to gold and silver.

Virgin Gold has decided to hold stakes in Platinum mining ventures since the beginning of 2012 and we are pleased that we are now able to offer this similar investment opportunity to all our shareholders.

The management is confident that the CPS-Platinum investment will yield a higher return for its shareholders in monetary value. When we first offered CPS-GOLD in January 2010, spot gold price was about USD1, 100 per troy ounce. Now, at the same time in October 2012 that we are offering CPS-PLATINUM to our shareholders, the spot price for platinum is about USD1, 500. With that said, current shareholders will benefit more from this offering as dividend per investment is higher in comparison to the initial offering of CPS-GOLD.

When CPS-PLATINUM gets listed in 2016, shareholders will certainly enjoy the appreciation in assets.

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