By how much do analysts predict palladium will outperform gold?
*Bloomberg, by Nicholas Larkin & Debarati Roy, March 29, 2012:
''Palladium Seen Beating Gold With Record Car Sales
Investors are buying palladium at the fastest pace in more than a year
as analysts predict rising demand and declining supply will turn this
quarter's worst-performing precious metal into the best by December.''
''The metal will average $850 an ounce in the final three months of
2012, 32 percent more than now, according to the median estimate of 11
analysts surveyed by Bloomberg. They expect a gain of 15 percent
for gold, 13 percent for silver and 11 percent for platinum.
Palladium lagged behind other metals this year on concern about slowing
growth in vehicle sales in China, the world's largest car market.
Autocatalysts account for 65 percent of demand, according to Barclays
Capital. Prices are poised to rise because carmakers are still
using the most metal ever, with the prospect of shortages because of
less supply from state reserves in Russia, the biggest producer, the
bank estimates.
'I like palladium the best among precious metals, it's relatively cheap
compared to the others,' said Bart Melek, the head of commodity
strategy at TD Securities Inc. in Toronto and the most accurate price
forecaster tracked by Bloomberg Rankings in the eight quarters through
the end of 2011. 'Autocatalyst demand for palladium should
grow. Russian government stocks will limit supply growth.'
Mine Production
Palladium fell 1.8 percent to $643.75 in London this year, beaten by
all other precious metals for the first time since the third
quarter. Gold rose 5.7 percent, silver 15 percent and platinum 16
percent. The Standard & Poor's GSCI gauge of 24 commodities
added 6.4 percent and the MSCI All-Country World Index of equities
appreciated 10 percent. Treasuries lost 1.2 percent, a Bank of
America Corp. index shows.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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