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Nobody would dream of ETF if prices were to fall - Liston Meintjes, Metropolitan In an interview on 702 @ 18:00 on Monday, 16 April 2007 [miningmx.com] -- THE launch of a platinum-backed exchange traded fund (ETF) will bring further upward pressure on the platinum price, said Liston Meintjes, chief investment officer at Metropolitan Asset Management. Zurich Cantonal Bank said on April 16 that it would issue the ETF, a development that drew the ire of platinum producers in South Africa because of the extra volatility it would bring into the market. However, Meintjes believed the ETF would never have legs unless there was confidence of a much higher platinum price in the first place. "Nobody would dream of launching an ETF if they thought the prices were going to fall," he said. "You get a marginal additional buyer and by the way, they are not particularly fussed at what they are buying the platinum at, because as long as they have got the buyers of the ETF, the guys that have decided that they want to be in it at that price, and away they go," Meintjes said. Meintjies was speaking on The World at Six, a week nightly business and information programme broadcast on 702 Talk Radio. However, the prospect of a stronger platinum price providing more upward momentum to certain JSE-listed platinum exploration stocks was a danger sign, according to Meintjes. Eland Platinum, which is digging a mine near Brits on the southern end of the Bushveld Complex, has gained 150% this year. "I certainly won’t want to chase something that is up 150% over a year. We have what we call a “greed index” and I think the earnings growing at 150%, I think it is getting into expensive territory," he said.
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