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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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