Last Updated : 15 March 2012 at 19:05 IST
Palladium to jump to $1000 in 2012, platinum to trade 30% premium over gold
Higher palladium and platinum prices are what John Lee, Chairman of Prophecy Platinum Corp predicted at the Bloomberg Link Precious Metals Conference in New York.
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
NEW YORK (Commodity Online): Higher palladium and platinum prices are what John Lee, Chairman of Prophecy Platinum Corp predicted at the Bloomberg Link Precious Metals Conference in New York.
Lee believes that investor demand will be so high that palladium prices will jump to $1000/oz this year, a 30% increase from current levels of $700/oz. On platinum, Lee believes that that the metal could in fact surpass gold once again- by a premium of 20%-30%.
A recent report by the HSBC bank adds support to Lee's prediction. The report suggests that platinum will tip to a 163,000 ounce deficit in 2012 from a 313,000 ounce surplus in 2011 while palladium shortage is expected to be 452,000 ounce in 2012 compared to a 974,000 ounce surplus in 2011. The fact that both metals will be in a significant deficit this year gives credibility to Lee's prediction.
On Tuesday, Platinum rose above gold for the first time in around 6 months. Platinum is up by about 20% this year, driven mainly by supply disruptions from South Africa, a major producer of the metal.
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