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A platinum-backed ETF could destroy the metal's industrial market - John Biccard, Investec In an interview on Radio 2000 @ 18:30 on 20 November 2006 [miningmx.com] -- PLATINUM prices have soared on fresh rumours of a platinum-backed exchange-traded fund (ETF), something which could destroy the industrial market for the producers, said John Biccard, who runs the Investec Value Fund. "I think the platinum producers wouldn’t want to have an ETF fund, because the platinum market is so tight already," Biccard said on the Moneyweb Power Hour. "To have a whole lot of speculators buying platinum could actually ruin the market for them, because it would push the platinum price to a very high level and it would probably destroy some of their industrial use for platinum, which is their bread and butter," he said. Platinum producers don't want prices to go too high because users substitute expensive platinum with cheaper alternatives. "The ideal scenario is a highish, steadily increasing price, rather than these big moves, which could affect their core customers, which is the auto industry. From what we’ve heard, they’re resisting this move and it’d probably be the right thing," Biccard said.
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