Silver
Silver, it is said is set to endure its longest rally since December as signs emerged the US economy is showing symptoms of slowing and the safe haven of gold and silver return.
Yesterday prices jumped as much as 3.8%, catapulting its ratio with gold to the lowest level in almost two weeks.
US data reports have shown weaker than expected forecast jobs growth in the US causing speculation that government data will also show a slightly weaker picture.
A broker at Newedge Group in New York commented “The correction in equities and disappointing economic data are pushing people to safe-haven assets”. This has led some investors to consider whether the fed will continue to taper asset bond buying.
Platinum
Platinum’s qualities lie in its characteristics as both a precious and industrial metal. Although last year platinum had a weaker than expected year due to the weaknesses surrounding gold, the start of 2014 have seen the lustrous metal pick up in terms of price.
Positive price news is the expected rise the automotive market for 2014. Diesel cars in particular should be watched as they require a higher platinum content and with Europe climbing out of economic crisis, automobile sales are set to rise.
In terms of jewellery, China is certainly a big player, rising income feeds increasing sales and this increases consumption.
Platinum Price Outlook
We predict an average price of $1,500 for the year which is rather bullish, however, if increased European car sales combine with supply disruptions in South Africa we believe we could see a huge platinum price spike in the not so distant future.