INTRODUCTION.
The
ever-increasing demand for platinum, coupled with conditions which have
greatly reduced the output of the Russian mines, is directly
responsible for a phenomenal rise in the price of the metal and
indirectly for an increase of production in this country.
The
yield of the Russian platinum placers, which usually furnish about 90
per cent of the world's supply, has been greatly reduced by the
unsettled condition of affairs in that country. The anxiety felt by
platinum dealers during the Japanese-Russian war has not abated since
the settlement of international affairs, but, if anything, has
increased, owing to the internal troubles which Russia is experiencing.
In fact, platinum mining was entirely stopped for a considerable
period, and the manufacturers both here and abroad were forced to
depend upon reserved stocks of the metal for their supply. Furthermore,
before these uprisings, it is said, the large Russian mines were
purposely curtailing their production. This reduction of the output is
due to the fact that the entire product for a varying term of years was
bought up under contract and at prices that now seem ridiculously low.
The mine owners, receiving only the fixed price, do not participate in
any gain due to rise in value and are therefore not anxious about a
large production, but are husbanding the limited resources of their
mines until such time as they can dispose of their product to better
advantage. Meanwhile the small mines, which, generally speaking, are
not hampered by such agreements, are working to their full capacity to
take advantage of the stimulated prices; but their entire output is but
a small percentage of what is usually produced.
This
stringency of supply, together with a greatly increased consumption of
the metal in the electrical and chemical industries, accounts for the
prevailing high prices.
Prices.—At
present (September, 1906) ingot platinum is quoted in New York at $34
per ounce. In December, 1904, the price of the metal advanced from
$18.50 to $19.50 per ounce, and early in March, 1905, a further
increase to $21 per ounce took place, the ingot metal surpassing gold
in value. On April 1, 1905, the price fell to $20.50 and remained firm
at this quotation until February 1, 1906, when it jumped to $25 per
ounce, where it remained until September. The average weekly quotation
for 1905 was $20.34 per ounce for ingot metal at New York.
At the close of the year prices of manufactured platinum were as follows:
Prices of manufactured platinum December 31, 1905.
Heavy sheet and rod, 75 cents per gram, or $23.33 per ounce.
Foil and ordinary sizes of wire, 80 cents per gram, or $24.88 per ounce.
Crucibles and dishes, 85 cents per gram, or $26.44 per ounce.
Perforated ware and special sizes of wire, 90 cents per gram, or $27.99 per ounce.
Cones, $1 per gram, or $31.10 per ounce.
Gas-engine sparking points from 87 cents for A to $1.80 for B.
At the time of writing (March, 1906) these quotations are about 20 per cent higher.
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