Sprott Physical Platinum-Palladium Fund
Posted: December 26, 2012 Filed under: ETF, Platinum, Precious Metals | Tags: Asset management, Exchange-traded fund, Investor, Net asset value, Precious metal, Spot price, Toronto, Washington D.C Leave a comment »As the end of the year draws closer, tensions in Washington D.C. are starting to boil as gridlock may push us over the much-feared “fiscal cliff” and back into recession. Diminishing hopes that policymakers can strike a deal before the deadline has kept a lid on confidence while prices have remained fairly stable, which may be setting up stock markets for a disastrous open in 2013. Amid the mixed landscape, Toronto-based Sprott Asset Management rolled out a physical platinum and palladium fund on the NYSE [for more economic news and analysis subscribe to our free newsletter].
Sprott’s Physical Platinum and Palladium Trust (SPPP) marks another stride forward in the democratization of the commodity asset class. Investors should note, however, that amid the wave of ETF launches, Sprott’s offering is actually a closed-end fund. 
This means that SPFF can trade at apremium or a discount to its NAV for prolonged periods of time since the number of shares outstanding is static when compared to an ETF, which instead relies on the dynamic creation/redemption mechanism
SPPP comes with a 0.50% annual price tag, which is quite competitive considering that its closest ETF-counterparts both charge a steeper fee. Like other Sprott metals funds, SPPP boasts a redemption feature that allows investors to redeem their shares for physical platinum and palladium, a feature that some find incredibly appealing.
Ways To Play
Investors looking to gain exposure to platinum and palladium, but who wish to steer clear of futures contracts, may opt for two existing exchange-traded funds offered through ETF Securities:
- Physical Platinum Shares (PPLT): This ETF is designed to track the spot price of platinum bullion and charges 0.60% in annual expense fees.
- Physical Palladium Shares (PALL): This ETF is designed to track the spot price of palladium bullion and also features a price tag of 0.60%.
Disclosure: No positions at time of writing.
Physical White Metals ETF (WITE)
Posted: December 10, 2012 Filed under: ETF, Platinum, Precious Metals | Tags: ETF Securities, Exchange-traded fund, Investment, IShares, London, Precious metal, Satellite Launch Vehicle, Spot price Leave a comment »Two years ago, ETF Securities launched the first ever physically-backed precious metals ETF that focuses exclusively on silver, platinum and palladium. Since its inception in December 2010, WITE has accumulated just over $40 million in assets under management and trades on average over 3,000 shares daily. As the global market moves steadily into recovery, WITEremains a strong and moderately-priced portfolio for commodity investors .
Under The Hood
WITE is the only offering that offers bundled exposure to silver, platinum and palladium under one ticker. This one-of-a-kind offering is designed to reflect the performance of the prices of silver, platinum and palladium bullion through a portfolio that is comprised of physical exposure to each of the metals. From an allocation perspective, WITE dedicates about 60% of its total assets to silver, while platinum account for 30% and palladium fills in the last slot at 10%. JP Morgan Chase Bank is the custodian for the fund’s vaults, with the silver stored in London, while the platinum and palladium are either held in London or Zurich.
Physical Vs. Futures Exposure
Thanks to the rapid expansion of the exchange-traded universe, investors now have multiple tools to choose from when it comes to selecting the optimal commodity instrument for their portfolios, taking into account both relative needs as well as risk tolerance. For precious metals exposure, investors can opt for one of several futures-based or physically-backed products, while some may even choose to gain tangential exposure through commodity producers. Physically-backed products like WITE are designed to move in unison with the spot price of the underlying metals, while futures-based ETPs may deviate from changes in spot prices depending on the state of futures markets or yields available on excess cash. Futures-based exposure introduces several nuances and additional factors that impact bottom line performance: these products depend on the spot price of the metal, roll yield related to the slope of the futures curve and interest earned on non-invested cash [see 25 Ways To Invest In Silver].
Performance & Outlook
This has been a tumultuous year for precious metals; as investors see the economy recovering they turn attentions back to equities and away from the safe haven of metals. WITE alone has lost five million in assets over the last years, and has been very clearly swayed by the performance of silver. Below, we outline WITE’s performance versus the iShares Silver Trust (SLV).
WITE vs SLV
When considering the chart above, WITE and SLV have maintained a very close and rocky relationship over the year, with WITE usually staying just above SLV. It’s important to consider that WITE provides heavier exposure to silver than it does to platinum or palladium, so silver prices will have the biggest sway at the end of the day. Rising consumption of electronics, automobiles and jewelry across emerging markets along with ongoing inflation fears, are two fundamental factors that paint a bullish investment case for the white metals given their extensive industrial use and potential safe-haven appeal.
Platinum Surge – Update from Credit Suisse
Posted: September 19, 2012 Filed under: Platinum, Precious Metals, Quantitative Easing | Tags: Credit Suisse, Exchange-traded fund, Lonmin, North American Palladium, Platinum, Rustenburg, South Africa, Stillwater Mining Company Leave a comment »
English: Reverse of American Platinum Eagle 2010 Русский: Реверс платиновой монеты 10 долларов 2010 года (Photo credit: Wikipedia)
Platinum (COMEX : US$1,626.75)
Finally. Platinum futures took a breather on a report that Lonmin workers in South Africa have accepted the company’s pay offer of a 22% wage increase and will return to work. Anglo American Platinum also confirmed that all of its Rustenburg operations have resumed, effective from Tuesday’s morning shift, the company said in a statement.
Prices in the past 30 trading days have climbed from under $1,500 per ounce to above $1,700 per ounce before a sudden drop today took prices below $1,620.
Shares of North American platinum and palladium producers had spiked in recent weeks after a six-week conflict in the mining sector, which claimed 45 lives. Stillwater Mining (SWC) and North American Palladium (PDL) are the only two N.A.-based platinum/palladium producers, the ETFS Physical Platinum Shares (PPLT) also give investors an ETF option.
In a note to clients, Credit Suisse said that save a short term rally in platinum prices due to the Lonmin strike, the price for platinum looks likely to be range bound at current levels until a supply response is seen.
The Consequences Of The Massive U.S. Deficit : John Mauldin
Posted: September 16, 2012 Filed under: AMP Books and Seminars, Central Banks, Platinum | Tags: Barack Obama, Bond market, CEA, Christina Romer, Gross domestic product, Japan, United States, White House Leave a comment »
The Cost of Dealing with the Deficit
At some point, if a nation does not get its debt and deficit under control, it will lose access to the bond market at reasonable rates. There have been no exceptions. There is a point at which the bond market begins to worry about the ability of a nation to repay its debt with a currency that is now worth less than when the money was lent, and then interest rates begin to climb.
There is no reason to think the US will be an exception to that rule. That is not what is meant by American exceptionalism.
Why do I think the deficit is such an issue? What makes me concerned that we can’t wait another four years until the US loses access to a low-interest bond market? Would that really be a disaster?
First, in a world without Europe or Japan, the US could probably go out to the latter part of this decade running large deficits. We have the world’s reserve currency, we are the major superpower, the engine of free markets, etc.
But I think Europe is likely to hit a real wall by the end of 2013 or the middle of 2014, if not sooner. Ditto for Japan. I am afraid that the bond marketeers will look at their losses in Europe and Japan and tell the US government something like this:
“We have already watched the movies about European and Japanese debt. Those did not have happy endings. The US debt movie seems to be based on the same script; so if you don’t mind, since we know how this ends, we are going to slip out during intermission.”
In my opinion, the deficit needs to be dealt with in 2013. If we wait until 2014, we will be in the middle of another election. As we will discuss below, solving the deficit is going to involve politically unpopular compromises for either or both parties. While I am optimistic that something can be done in 2013, I am cynical enough to think that 2014 is much more politically problematic.
By 2015 the debt will be well above 90% of GDP. As outlined in previous letters, there is increasing evidence that when the debt of a country grows to 90%, GDP slows by about 1%, which of course makes it harder to grow your way out of debt.
Interest rates start to rise as a result, and that makes it harder to balance the budget. Yes, I know, the Fed can hold rates down and print money; but printing money in quantity is not a strategy designed to bolster bond market confidence in the value of the dollar.
Not only the research of Rogoff and Reinhart, but numerous other studies also point out that when confidence goes, it is a fairly quick process. It is indeed the Bang! moment.
If rates start to creep up, perhaps Congress will be forced to do something. But at that point, it will be time for higher taxes and deeper cuts than any of us can now imagine. The longer things go on as they are, the worse the final result and restructuring will be.
We have often been told that borrowing money creates a problem for our children. And that is true. But it is also creating a problem for this generation in the here and now.
Much of Europe and Japan are going to fall into a depression as a result of their unwillingness to deal with the deficits and the structural issues they face. 25% unemployment is an ugly, ugly reality that is spreading across Southern Europe. Japan will face its own version of a debt crisis, and I think the result will be significant inflation in its import prices and a drop in the living standards of its elderly.
Perhaps I am wrong and the US can go on for another four years before we reach our own Bang! moment. Things can sometimes go on for longer than we think, for reasons we (or at least I) do not understand. But waiting longer certainly will not make it any easier. Entitlement programs are steadily getting into worse shape, and interest costs will be another $80 billion a year for the additional debt we will take on (my back-of-the-napkin estimate – you can make your own). Trying to solve the problem four years from now will require decisions even more difficult than those we have to make now.
The Cost of Dealing with the Deficit
Let’s be clear. For reasons I have written about at length, there is a significant cost to cutting the deficit. It will impact current-year GDP. I certainly would not advocate balancing the budget all at once or even in a few years. I would suggest cutting by no more than 1% of GDP per year, or about $150 billion a year. Even that little will produce growth headwinds.
Tax cuts or increases have an impact on the economy. Quoting from Forbes:
“A powerful analysis by President Barack Obama‘s first Chair of his Council of Economic Advisers (CEA) indicates the President’s proposed tax increases would kill the economic recovery and throw nearly 1 million Americans out of work. Those are the extraordinary implications of academic research by Christina D. Romer, who chaired the CEA from January 28, 2009 – September 3, 2010. In a paper entitled “The Macrcoeconomic Effects of Tax Changes,” published by the prestigious American Economic Review in June 2010 (during her tenure at the White House), she stated: ‘In short, tax increases appear to have a very large, sustained, and highly significant negative impact on output
Why Are Your Investing Results Mediocre ?
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Ask yourself the hard questions – what are my expectations/ results and what must I do to change if the results aren’t what you want.
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Stock Market Magic: Building Your Apprentice Millionaire Portfolio 2012: All you need to succeed in today’s stock market [Paperback]
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Colossus Minerals Update
Posted: September 14, 2012 Filed under: Bernanke, Exploration Companies, Gold, Platinum, Quantitative Easing, The Federal Reserve | Tags: Brazil, Company, CSI: Crime Scene Investigation, Denver Gold, Federal Reserve System, Gold as an investment, Serra Pelada, Toronto Stock Exchange Leave a comment »
Gold :: Locality: Serra Pelada (Serra Leste) Au-(Pd-Pt) deposit, Curionópolis, Carajás mineral province, Pará, North Region, Brazil (Locality at mindat.org) :: Size: miniature, 4.3 x 2.3 x 1.2 cm (39 grams) ::;Gold :: A large and important nugget for the locality! Gold nuggets from Brazil are quite hard to obtain. This one shows minute crysatllization in the pockets, as well. (Photo credit: Wikipedia)
Colossus Minerals (CSI : TSX : $5.05)
Gold stocks got a meaningful boost after the Federal Reserve announced a third round of quantitative easing yesterday.
One of the names that has had a solid run lately is Colossus Minerals, who is currently building their Serra Pelada mine in Brazil. At the recent Denver Gold Forum, CSI management reiterated their commitment to commencing production by mid-2013. The company also noted that initial bulk sample extraction from the ore body is expected in Q4/12, with an initial one-year reserve to be announced in Q1/13. During the presentation the company highlighted the exploration upside for the project, however it is unlikely the market will give them much value for drill results until they get the mine into production.
Once the mine is fully ramped up in 2014 the company expects to produce approximately 200,000 ounces of gold per year along with meaningful platinum and palladium production. The by-product credits from the platinum and palladium production will allow the mine to have some of the lowest gold cash costs in the industry. The company is due to issue another construction update, as the last construction update was issued in April. While shareholders have enjoyed the last several weeks of positive price action, the company’s Gold Linked Note holders are now also benefitting from the move in gold, as the Notes now yield 10% after the price of gold crossed US$1,750 per ounce.
Commerzbank Gold and Precious Metals Forecasts
Posted: September 10, 2012 Filed under: Bernanke, Central Banks, Euro, Euro Zone, Forecasts, Gold, Inflation, Platinum, Precious Metals, Silver, The Federal Reserve | Tags: Bloomberg, China, Exchange-traded fund, Gold as an investment, India, Precious metal, United States, World Gold Council 1 Comment »
Polski: Sztabka złota ważąca 12,5 kg. Własność Narodowego Banku Polskiego. (Photo credit: Wikipedia)
Commerzbank Forecasts 2012/13
Q3 Q4 Q1
Gold 1700 1900 1950
Silver 31 35 38
Platinum 1500 1750 1800
Palladium 650 750 800
US$ per troy ounce
Gold to shine again in the second half of the year
A firm US dollar, selling by speculative financial investors and subdued physical demand have put pressure on the price of gold in recent weeks. We expect demand to pick up again in the second half of the year and envisage the gold price again reaching last year’s record high towards the end of this year. Silver, platinum and palladium are likely to find it hard to make significant price gains given the gloomier economic prospects.
In May, gold moved lower amid the general downtrend, losing 6.3% over the course of the month in US dollar terms. This marked the fourth largest monthly loss in the past 3½ years. What was remarkable was that the decline occurred despite the escalation of the sovereign debt crisis in the Eurozone and the deterioration in the global economic outlook.
Furthermore, over the past month, gold lost just as much as the S&P 500 stock index on a percentage basis. Does this mean that gold’s role as a safe haven in times of crisis has weakened? As we highlighted in a research note in August of last year, gold generally fares better than other asset classes in times of crisis. Government bonds are one exception, which performed similarly as well or better than gold in past crises.
We updated the data series used at that time for the months up to and including May 2012. The results remain unchanged. Hence, the past month is likely to represent an anomaly. We have observed similar outliers in the past, for instance, in September 2011 and October 2008. The fact that gold was unable to benefit from an escalation in the crisis can be put down mainly to the stronger US dollar. The dollar appreciated by 5.5% from late April to the end of May on a trade-weighted basis to reach the highest level in just under two years (Chart 1).
The reason for this was that, due to the Eurozone debt crisis, investors sought refuge in US Treasuries, the largest and most liquid bond market in the world. Other investors took a flight to quality into liquid German Bunds. The weaker euro was subsequently reflected in its entirety in a declining gold price. The gold price also came under pressure of late from sales on the futures market. Speculative financial investors reduced their net long positions by a further 37,500 contracts in May. This represents a volume of 117 tons, or more than twice as much as was absorbed by ETFs in the first quarter of 2012. Speculative net long positions have more than halved since early May, and at a good 70,000 contracts currently, are at the lowest level since December 2008
At the same time, investment demand has also been rather subdued of late. The gold-backed ETFs tracked by Bloomberg recorded a slight outflow of 15 tons in May. Sales of US gold coins totaled 53,000 ounces in May, which represented more than a doubling in sales compared to the extremely weak previous month. In the same month of the previous year, this figure had stood at more than 100,000 ounces, however. According to the World Gold Council, demand for gold bullion and coins in the first quarter totaled 338 tons, 17% lower than in the previous year. At the same time, this was the lowest level since the third quarter of 2010. Given declining inflation rates due to the weak economy, austerity measures and falling oil prices, interest in gold as a form of inflation protection has obviously waned perceptibly .
India and China
Gold demand in India this spring was particularly disappointing. While jewellers have ended their weeks-long strike after the government reversed part of its planned tax increase, but in light of record-high gold prices in local currency terms, households are selling gold at a faster pace. According to the Bombay Bullion Association (BBA), the supply of gold scrap could more than double this year to around 300 tons. This is compounded by the fact that demand is being slowed by record-high domestic prices. Accordingly, less gold needs to be imported. According to the BBA, gold imports have probably halved year-on-year to 50-60 tons in May. However, this weakness is offset by China, which will likely overtake India as the world’s largest consumer of gold this year. In April, China imported more than 100 tons of gold from Hong Kong (Chart 3). Since the start of the year, Chinese gold imports from the former British Crown Colony have reached 239 tons. That is nine times the total in the same year-earlier period, and more than half of total imports last year. Even the 6% year-on-year increase in domestic output to 110 tons over the same period was not nearly enough to satisfy surging demand. A large share of the gold imports from Hong Kong likely found their way into the vaults of the Chinese central bank, which does not release any regular data.
Central Bank Buying
The central banks continue to represent a price-supportive factor. Last year, net purchases by the official sector totaled 440 tons, the highest level in 47 years. According to the IMF, central banks bought 130 tons of gold in net terms in the first four months of this year. Although this is somewhat less than the 152 tons in the same year-earlier period, buying activity in April rose measurably. The biggest buyers this year are Turkey (44 tons), the Philippines (35 tons), Mexico (19.5 tons), Kazakhstan (16 tons) and Russia (13 tons).
What is the outlook for the gold price going forward?
We remain convinced that in the second half of the year, the gold price will resume its uptrend which was interrupted in the spring. The adjustment among speculative financial investors is now likely to be more or less finished, so that the selling pressure from this front is likely to wane. In this vein, it is fitting that the operator of COMEX, the CME Group, lowered its margin requirements for gold futures by 10% at the end of May. This lowers the costs for purchasing and holding a At the same time, investment demand has also been rather subdued of late. The gold-backed ETFs tracked by Bloomberg recorded a slight outflow of 15 tons in May.
The Platinum Battles In South Africa – Credit Suisse Forecast
Posted: August 28, 2012 Filed under: Africa, Platinum, Precious Metals, South Africa | Tags: Credit Suisse, Eastern Platinum, Lonmin, National Union of Mineworkers, Reuters, South Africa, Stillwater Mining Company, Strike action Leave a comment »
100_4016 (Photo credit: copwatcher)
According to Reuters, on Monday, workers blocked colleagues from going down mine shafts and used threats of violence to block traffic at Lonmin‘s Marikana mine in South Africa. On Saturday, more than half of Lonmin’s 28,000 workforce showed up for work at its Marikana site – more than last week but still far short of the numbers needed to start mining operations.
The company said on Friday, “Mining operations will only resume once we have sufficient workers in attendance and the necessary safety procedures have been undertaken.” Elsewhere, violence has spread to Lonmin’s eastern operations. The company said in a statement, “There have been incidents of intimidation towards bus drivers overnight as well as intimidation of Eastern’s workers this morning, preventing them from coming to work.” Lonmin’s eastern operations had avoided acts of unrest until now. Lonmin’s South African operations have been paralyzed since an illegal strike involving 3,000 rock driller operators started two weeks ago and exploded into violent clashes that killed 44 people, including 34 striking workers gunned down by police.
There is no guarantee striking workers will return this week after a mourning period for comrades killed in the labour unrest. Separately, the National Union of Mineworkers reported that workers at a mine run by Eastern Platinum (ELR) in South Africa were blocked from going to their jobs on Monday by people believed to be colleagues.
As a results of the price move in platinum, investors have began looking at North American platinum producers, who’s shares have had somewhat of a reaction. Stillwater Mining (SWC) and North American Palladium (PDL) are the only two N.A.-based platinum/palladium producers, the ETFS Physical Platinum Shares (PPLT) give investors an ETF option.
In a note to clients, Credit Suisse said that save a short term rally in platinum prices due to the Lonmin strike, the price for platinum looks likely to be range bound at current levels until a supply response is seen. In this situation Lonmin will likely test covenants, whether it in September (strike impact depending) or in March.
Stillwater Mining – Palladium Prices Trending Higher
Posted: August 21, 2012 Filed under: Intermediate Producers, Platinum, Precious Metals, South Africa | Tags: Credit Suisse, Lonmin, New York Stock Exchange, North American Palladium, Platinum group, South Africa, Stillwater Mining Company, SWC Leave a comment »
English: The Stillwater mine Ελληνικά: Το ορυχείο στο Stillwater (Photo credit: Wikipedia)
Stillwater Mining* (SWC : NYSE : US$10.15)
On everyone’s radar screen right now? The deadly violence affecting Lonmin PLC‘s platinum group metal mining operations
in the Marikana area of South Africa has brought Stillwater Mining back onto our radar screens. SWC is the only U.S. producer
of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian
Federation. As side from benefitting from the recent developments on the supply side, how is SWC doing operationally? A
Credit Suisse analyst recently visited SWC’s Stillwater mine and Blitz project in Montana and had the following mine
tour/meeting takeaways:
i) SWC operations continue to run well, with ore grades still at prior quarters levels into mid-August.
Even with a couple normal maintenance downtime days in July, production is trending well relative to full year guidance
(forecast of 500,000 ozs);
ii) Blitz Project development is on track. It does not appear SWC will start any mining at Blitz until
late 2016 at the earliest, as they want to prove up reserves first (no ounces from Blitz currently in reserves) before starting mining; and
iii) With respect to liquidity, SWC has sufficient right now, with no need to secure financing until the 2013 convert is callable in March 2013. Credit Suisse believes SWC shares offer compelling upside at current levels, especially given recent supply side disruptions.
With more platinum ounces lost as violence escalates in South Africa, further near-term upside pressure is likely.
Additionally, Credit Suisse believes the overall trend in palladium prices over the next year will be higher. We note the only other North American based platinum and palladium producer is North American Palladium (PDL).
Platinum Reacts to South Africa Massacre / Union Battle
Posted: August 20, 2012 Filed under: ETF, Platinum, Precious Metals, South Africa | Tags: African National Congress, ANC, Jacob Zuma, Lonmin, National Union of Mineworkers, Rustenburg, South Africa, South Wales Miners' Federation Leave a comment »
African National Congress (Photo credit: Wikipedia)
The price of platinum continued to surge after the shocking massacre of miners at Lonmin’s South African
platinum mine near Rustenburg. Since the dispute began, a total of 45 miners have been killed in battles with police. The strike
was sparked by a demand for better wages however it appears that the issues runs deeper than that. The traditional union in the
area, the NUM, is a key ally of the African National Congress (ANC). Their backing is critical for President Jacob Zuma in his
fight to retain his position in the ANC’s party elections this December. Miners accuse leaders of the ANC of abandoning their
grassroots concerns, focussing instead on politics. So they turned to an alternative union to fight in their corner.
A key detail in this strike is the civil war that appears to have started between the two unions. While the price of platinum has spiked over the last couple days, there could be more to come.
Lonmin, who produces 12% of global platinum, has shut-in all production and given the enormity of yesterday’s events this situation will likely not be resolved quickly. As a results of the spike in the platinum price, investor’s interest in North American (N.A.) platinum producers has begun to pick up. Stillwater Mining (SWC) and North American Palladium (PDL) are the only two N.A. based platinum/palladium producers, with ETFS Physical Platinum Shares (PPLT) giving investors an ETF option. Given the severity of the news, one gets the feeling that this dispute will not be short-lived
Gold In ‘Wait-And-See Mode’ Awaiting Central-Bank Action :BNP Paribas
Posted: August 12, 2012 Filed under: Central Banks, Euro Zone, Gold, Inflation, Platinum, Precious Metals, Quantitative Easing, The Federal Reserve | Tags: BNP Paribas, Central bank, Federal Reserve System, Jackson Hole, Kingsview Financial, Precious metal, Quantitative Easing, United States Treasury security Leave a comment »
2010 BNP Paribas Masters (Photo credit: Wikipedia)
BNP Paribas says gold is “in the starting blocks” but could remain range-bound for a while yet.
The metal has been in a band of roughly $1,530 to $1,625 an ounce since early June. Sentiment has picked up lately, as reflected by rising open interest on higher strike options and an option skew veering more in favor of calls relative to puts. Still, other indicators, such as speculative interest, have not picked up materially. “From a technical perspective, the positive shift in sentiment towards gold will need to be confirmed by the price moving past the current strong resistance at US$1,625,” says precious-metals strategist Anne-Laure Tremblay.
“On a more fundamental basis, the market will be in a wait-and-see mode for future central-bank action before attempting to move higher. Until then, we are likely to further experience range-bound trading in gold.” BNP does see potential for the Federal Reserve to signal a third round of quantitative easing later this month at the annual Jackson Hole, Wyo., symposium. “Gold stands to benefit from monetary easing. Higher liquidity, inflation expectations and a depreciating USD are all positive factors for the balance of the year,” Tremblay says. “Only an unexpected improvement in the economic conditions in the U.S. and the eurozone would put off central-bank intervention and undermine higher prices.”
The bank says the main downside risk still lies with eurozone, where contagion from the soverign-debt crisis “could drive investors towards the U.S. dollar and Treasuries rather than gold.
Friday August 10, 2012 11:42 AM
Gold’s rally looks positive for bulls, based on technical charts, says Charlie Nedoss, senior market strategist with Kingsview Financial. “We tested the lows and made a double bottom at $1,605-06. We have an outside day,” he says. “If we can close over $1,618 basis the December (contract) it would be very positive.”
Close Over $1,618 ‘Very Positive’ For Gold – Kingsview Financial
Friday August 10, 2012 11:42 AM
Gold’s rally looks positive for bulls, based on technical charts, says Charlie Nedoss, senior market strategist with Kingsview Financial. “We tested the lows and made a double bottom at $1,605-06. We have an outside day,” he says. “If we can close over $1,618 basis the December (contract) it would be very positive.”
Platinum On Defensive, Trading At Sharp Discount To Gold : RBC
Friday August 10, 2012 9:30 AM
Platinum remains on the defensive and is now trading at a discount of more than $200 an ounce to gold. “Some traders see weakness in platinum emanating from (the) eurozone outlook as the euro also is weaker again,” says George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures. “The gold-plat spread (is) over $200 now…This could continue until September, when new-car sales and better economics could change the outlook.” Europe is important for platinum demand, in particular. Diesel-powered vehicles, which require platinum for catalysts rather than less-expensive palladium, are popular on the continent. As of 9:21 a.m. EDT, spot platinum was $9.60 lower to $1,396 an ounce, while spot gold was $1.40 higher to $1,618.20 after bouncing from overnight weakness.
