The Positive 2013 Precious Metals Outlook Appears Unaffected by a Strong US Dollar

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It is not hard to notice that there was a major lack of conviction in the gold spot price for the last year. However, many experts are forecasting 2013 as year with less volatility and more upward growth in gold, silver, palladium and platinum.

The Price of Gold
All throughout 2012, gold continually struggled to maintain its leadership as a safe haven for hard assets. Even as the US dollar continues to strengthen, the traditional hurdles for gold increasing in price seem to be unaffected. This is probably a result of many of the macro catalysts that are pushing the spot price of gold substantially higher.

The U.S. Congress’ inability to effectively manage the vote to raise the debt ceiling, along with the continuing uncertainty in Europe, is proving to be the ideal scenario for higher gold prices. The average price of gold over the last 12 months remains strong, at approximate $1775 per troy ounce. It still holds a high of $1900 per troy ounce, and a low over the last year at $1540 per troy ounce.

The Need for Silver
Fundamentals did little to support silver in the precious metals market. However, many experts agree that the precious metals outlook for silver will remain strong throughout 2013. Overall, the marketplace is poised to deliver a greater surplus. Demands from the industry are likely to soften even as mining continues to grow. Even so, the price of silver continues to rally against minimal industrial demand. This is often as a result of interest from the investment world. While analysts agree that silver will likely remain volatile throughout the coming year, it should rise significantly in price, upwards of $38 per troy ounce, off its average of $32.50 per troy ounce.

The Supply Disruptions of Platinum Affect the Precious Metals Outlook
Over the last 12 months, the South African mining industry has continued to modify the supply of platinum. Many analysts agree that the previous soft demand for platinum will reverse itself, and take a huge bite out of its supply. After experiencing a large deficit last year, platinum is expected to reverse that course and be constrained in the marketplace, which should raise its price significantly. As additional demands continue to rise, it will move the price higher, with only a minimal amount of resupply from the mining industry.

As the world’s legislation on automobile emissions becomes tighter and more regulated, the higher demand for platinum in catalytic converters should dramatically increase its price due to a dwindling supply. With an average price of $1690 per troy ounce, many experts agree that by the end of 2013, there is a potential of the spot price of platinum to reach $1840 per troy ounce.

The Strong Fundamentals of Palladium
The numbers on palladium do not lie. The precious metals outlook in 2013 for palladium appears to be extremely bright due to the strong fundamentals driving its price. For the last 3.5 years, palladium imports in China have remained low. However, the demand from automakers and other industries will significantly raise the price of palladium across China in North America during 2013. This will provide a stronger foundation.

On palladium’s supply side, Switzerland has received fewer shipments from Russia, during the last year. While this might not be evidence of a dwindling stock reserve, the market seems to think so. As a result, the price is expected to rise significantly.

The precious metals outlook for 2013 appears to be less volatile, with an increase in demand and a limited supply in gold, silver, palladium and platinum.