I remember back in 1995 and 1996, gold and platinum were both selling for around $400 an ounce. Now gold is selling for around $972 per ounce, a a little more than double. Yet platinum is now over $2,000 per ounce, a quintupling in price.
Platinum has the following characteristics:
It is thirty times rarer than gold. The top producer is South Africa, then Russia, then Canada. There is a large amount of platinum on the Moon. Platinum complexes are used in the treatment of cancers. King Louis XV of France declare it the only metal fit for a king. It is used in the manufacture of jewelry, electronics, dentistry, lab equipment, and automobile emissions controls.
Here are some stocks that participate in the mining of platinum:
Anglo American PLC (AAUK) which trades on NASDAQ, is a miner of platinum, gold, diamonds, coal, and industrial minerals. The stock has a P/E of 12, a forward P/E of 19, and pays a yield of 2.6%. It has a market cap of $86 billion.
Anglo Platinum (OTCPK:AGPPY) produces platinum, palladium, rhodium, ruthenium, iridium and osmium. It has a market cap of $37 billion, and a net profit margin of 24%.
Anooraq Resources Corporation (ANO) is a Vancouver, Canada-based mining company involved in the exploration of platinum group metals in South Africa. The company recently reported diluted earnings per share of negative $0.03 per share.
Aquarius Platinum (OTC:AQPBF) mines for platinum, palladium, rhodium and gold in South Africa and Zimbabwe. The stock has a market cap of over $4 billion, and a P/E of 18.7.
Impala Platinum (OTCQX:IMPUY) is a miner of platinum group metals, also known as PGMs, including platinum, palladium, rhodium, ruthenium, and iridium. It operates in South Africa and Zibabwe. This company, which has a $26 billion market cap, has a 28% profit margin.
JSC MMC Norilsk (OTCPK:NILSY) is a Russian miner of platinum, palladium, copper, nickel, cobalt, rhodium, silver, gold, tellurium, selenium, iridium and ruthenium. The market cap is $56 billion, and the net profit margin is over 49%.
Lonmin PLC (OTCPK:LNMIY) is a South Africa-based miner of platinum group metals. They have a market cap of almost 11 billion and a PE of 34.
North American Palladium (PAL) which trades on the American Stock Exchange , mines for palladium, platinum, gold, copper and nickel. The stock had negative earnings per share of $0.46 per share, with a market cap of $383 million.
Northam Platinum Pty (OTC:NMPNF) mines for platinum, palladium and rhodium in South Africa. The stock has a net profit margin of 31.5%.
Stillwater (SWC) which trades on the New York Stock Exchange, is based and operates in Montana. It mines, refines, and sells palladium and platinum. The stock has a forward P/E of 16.
Jubilee Platinum (OTCPK:JUBPF) is a London-based company that explores for platinum and other minerals. The stock has a $73 million market cap.
Disclosure: The author does not own any of the above.