Read for you:'Recent negativity sorrounding the outlook for the platinium price might have been overdone,argues RBC Capital markets.

"While the world economy is slowing-leading to lower auto and jewellery sales-and metal supply projected to expand,they believe this need not ultimately be bad for platinum group metals.

They believe demand will cont.to grow.RBC notes that the diesel share of the Asian car mkt is expanding and sales of European diesel-electric hybrid car sales kicking in from 2009.

RBC acknowledges that a real risk lies with jewellery demand but says that the reecent drop in the platinum price should offer some support.They also donot see the oversupply forecast by some observers.

Supply dynamics are essentially a function of two things:restricted capacity of the majors to expand due to electricity shortages that will not be resolved any time soon;and junior production being delayed.

This exacerbates the capacity to find funding,compounding the potential for much lower actual supply than currently forecast.It also pushes larger producers to take out smaller but LOWER- cost rivals in order to swap high cost production for lower cost-not necessarily adding new production in the process.

They increase their longer term metal price forecast in line to what they see as the absolute minimum required to get new production on line.

Enjoy the sunday,

Inca.