Platinum Price OutlookIntroductionThe purpose of this report is to predict the future price of platinum using macroeconomic and microeconomic principles. The factors influencing the supply and demand of platinum will be examined and a forecast regression analysis will be carried out. Factors Affecting Supply As shown in Chart 1, South Africa is the largest producer of platinum (79%) followed by Russia (12%) and North America (5%). Supply from regions outside South Africa has remained relatively stable over the past decade, with any increases in supply driven primarily by South Africa. For this reason, only factors that influence South Africa's ability to supply the market will be examined. We expect the global platinum supply deficit to increase in 2008 in light of the current shortage of skilled workers and the energy crisis in South Africa. HSBC metals analyst Victor Flores expects the global platinum supply deficit to increase in 2008 by about 0.5 million to 2 million ounces (Hill L, 2008, “Platinum deficit likely to widen in '08,” Mining Weekly, March 3). Labor shortage Impala Platinum CEO David Browne said in an interview that the biggest challenge facing the mining sector currently is the skills shortage. 2007 saw the first year-over-year decline in platinum supply since 2000, with platinum production falling from 6.7 million ounces to 6.6 million ounces. Anglo Platinum and Impala Platinum, the two main suppliers of platinum in South Africa, have both reported difficulties in achieving higher supply levels due to shortages of skilled labour. This shortage has been exacerbated by rising commodity prices that have forced previously mothballed operations to reopen. It is unlikely... half of paper......rs, the overall price of platinum is expected to rise to USD 3,373 by end-2008 Bibliography Anglo Platinum Market Review Gupta NS, 2008, "Tata's Nano: High-end version to hit l 'Europe" The Economic Times 5 March 2008, Chevalier P, 2005, Platinum Group Metals, Canadian Minerals Yearbook 2005, p4Topcar - 'More Expensive Nano for SA' pp 22 March 2008 The Economist, “A pot of platinum for the rainbow nation” 20 May 2007,Bruce JP, Haites EF, 1995, “Climate Change1995, Economic and Social Dimensions of Climate Change”, Cambridge University Press,Hargreaves B, 2008, "Material Earnings", Professional Engineering, Professional Engineering Publishing 16 January 2008 p 43B . Gene & F. Cawood, 2005, “Platinum Market - Position Paper”, 19th Turkey International Mining Congress and Fair, IMCET2005, İzmir, Turkey, 9-12 June, pp 29