Sunday, November 24, 2013

If You Absolutely Have to Have Precious Metals Exposure, Consider Platinum (HSBC)

I mean beyond the silver and lead you will use to make everyday transactions when the apocalypse hits.
(enough lead and you can take the other guy's gold)
Short gold until the first few high-cost producers go bankrupt.
There is also still time for a pair trade.
From Kitco:
HSBC Looks For Stronger Platinum, Palladium Prices In 2014
Buoyant auto demand and static mine output are likely to propel prices of platinum group metals higher next year, said HSBC Friday.

The bank looks for the metals to rise, although it trimmed its prior price forecast for platinum while leaving its palladium forecasts unchanged.

“Based on tightening fundamentals, we expect the PGMs to increasingly decouple from the influence of gold,” the bank said.

HSBC looks for platinum to average $1,625 an ounce in 2014, down from its prior estimate of $1,725. For the current year that is winding down, HSBC lowered its forecast to $1,500 from $1,580.
The palladium forecasts were left at $750 for 2013 and $825 for next year.

As of 9:24 a.m. EST, spot platinum was at $1,393.20 and palladium was at $719.30.

Platinum is often influenced by movements in gold, therefore was dragged down by gold this year, the bank said. However, analysts also said, they look for platinum to rise in 2014 regardless of what gold does.

HSBC looks for a record platinum market deficit of 889,000 ounces this year, narrowing to 402,000 ounces in 2014....MORE