New Nelson Mandela Coin Could Make Platinum More Valuable

The death of an inspiring world leader doesn’t often have a direct impact on the scarcity or value of a precious metal. But that seems to be happening following the death of Nelson Mandela, according to “Mandela Platinum Coin Seen Adding 8% to Global Demand,” an article by Andre Janse van Vuuren that appeared on Bloomberg.com on February 14th.

Here are the outlines of the story . . .

Image: A platinum version of a Nelson Mandela coin could raise platinum prices, benefitting platinum refining customers of Specialty Metals.
  • The government of South Africa is discussing the possibility of minting a platinum coin named for Nelson Mandela.  If that happens, demand for the coin is expected to be immense. According to the Bloomberg.com article, as much as 8% of the total world production of the metal in the year 2014 could go into the coins.
  • South Africa currently produces 70% of world’s platinum. So if the Mandela coin does go into production, it will utilize as much as 8% of the platinum that comes from the world’s largest supplier.
  • Platinum prices are stable and could rise. As the Bloomberg.com article notes, “Platinum prices have gained four percent this year, after declining 11 percent in 2013. The metal traded at $1,428.25 an ounce as of 2:52 p.m. in Johannesburg.”

Will the Mandela Coin Cause Platinum Prices to Rise?

That remains to be seen. But whether platinum prices rise or hold steady, one thing is certain: Platinum is a metal to watch in year 2014 and beyond.

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