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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.

15 Mar 2012

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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COMMENTS (1)
Hunter Wise Commodities
16 Mar 2012
Not only is gold predicted to have a stellar year, but the platinum group metals (PGMs) are forecasted to have a bullish year as well. We at Hunter Wise Commodities agree with what John Lee said at the Bloomberg link Precious Metals Conference earlier this week. We too believe that investor demand for PGMs will be so high that palladium prices could jump from $700 to $1,000 per ounce this year. We also believe that platinum could gain 20 to 30 percent to surpass gold. As this article points out, platinum is already up 20 percent year-to-date, rising above gold for the first time in six months earlier this week. We don't think demand will decrease any time soon thanks to the continuous limited South African supply situation. At Hunter Wise Commodities, we can help anyone who is interested in platinum investing or palladium investing -- as well as platinum or palladium retail -- to get started. Contact us at hwcom for more information.
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