Platinum Climbs to Peak Level, Shares of Miners Rally

NEW YORK (AP) -- Platinum climbed to an all-time high on the New York Mercantile Exchange Tuesday, sending shares of platinum miners sharply higher.

The metal, which is more rare than gold, touched $1,402.50 an ounce in earlier trading -- well ahead of its record $1,335 an ounce set in May. The price of platinum for January 2007 delivery later came down to about $1,225.

ADVERTISEMENT
click here
Shares of Montana-based Stillwater Mining Co. jumped $1.03, or 8.4 percent, to $13.31 in afternoon trading on the New York Stock Exchange. Canada's North American Palladium Ltd., which produces both platinum and palladium, saw its shares rise 37 cents, or 4.2 percent, to $9.20 on the American Stock Exchange.

JPMorgan analyst John Bridges said in a note to clients Tuesday that he expects precious metals to outperform other commodities, many of which have witnessed declines from peak prices earlier this year.

"While demand for base metals and consumables like oil will fall in an economic downturn, precious metals behavior is more mixed with their roles in consumption and investment/insurance," he said.

Elsewhere in the metals market, gold for December delivery rose $4.70 to $626.80 an ounce, while silver added 29 cents an ounce to $13.03.

Gold producers also got a boost, with shares of Barrick Gold Corp. rising 88 cents, or 3.1 percent, to $29.22 on the New York Stock Exchange, while Newmont Mining Corp. shares traded up $1.16, or 2.6 percent, to $45.19.