Bringing you live news and features since 2006 


Platinum price could spike during Fifa World Cup, says ETF Securities


The price of platinum could spike during the Fifa World Cup next month, according to Shamim Mansoor, head of precious metals sales at ETF Securities Marketing. 

Power constraints have been a major issue for miners in South Africa as the country’s state owned energy company, Eskom, has not been able to keep up with the rapid rise in South Africa’s demand for energy. 

On Mansoor’s estimates it will be extremely difficult for Eskom to maintain full power supply to the mining industry during the Fifa World cup scheduled for June-July this year as increased demand for power from stadiums, broadcasting centres, base camps, hotels, restaurants and other service industries takes priority.
South Africa produces approximately 75 per cent of the annual global platinum production and the industry relies heavily on electricity, therefore any interruption or loss of electricity could have an impact on global platinum production.

Eskom, which supplies 95 per cent of South Africa’s electricity has committed to ensuring uninterrupted power supply for the Fifa World Cup. Therefore, if demand exceeds supply, load shedding on miners may be enforced.
Mansoor says: “On 24 January 2008 when Eskom instituted load shedding on the miners, ETFS Physical Platinum ETC went from USD158.44 per security, to a high of USD222.06 on 3 March 2008, an increase of 40 per cent. This is because electricity demand exceeded supply in South Africa and miners were forced to use only 90 per cent of capacity, thereby reducing production.
“With the World Cup being held during the South African winter, the use of electricity is likely to exceed the previous winter peak. This then begs the question whether current capacity will be able to accommodate heightened demand during the Fifa World Cup. To ensure there is an uninterrupted supply of electricity during the Fifa World Cup, load shedding is likely to be enforced again, and therefore there is a risk we will see another price spike.”

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by