Commerzbank predicts continuing rise in price for precious metals during 2012.
(1888PressRelease) January 17, 2012 - MIAMI, FL - Commerzbank, Germany's second largest bank, predicts ongoing increases for precious metals in 2012, calling the sharp correction experienced during the final quarter of 2011 a temporary aberration. The bank forecasts that gold will continue its upward trend throughout the year, with average prices around $1725 an ounce, moving to $1900 during the fourth quarter. Forecasts for silver are for an average of $34 an ounce, based on anticipated growth in both investment and industrial demand.
According to a report by Allen Sykora of Kitco News, Commerzbank also sees 'considerable potential' for recovery for the platinum group metals in the coming year, based on rising industrial demand and possible issues with supply. Stockpiles of palladium in Russia, in particular, are dwindling and there are ongoing labor and production problems in South Africa. The bank predicts an average price for platinum of $1650 and for palladium of $730, with this average rising to $1850 and $850 respectively by the fourth quarter of the year. If these predictions prove accurate, it would mean that gold would continue to trade at a premium to platinum, albeit a reduced one, for a further year.
"For platinum to trade consistently below the price of gold is unusual," says Bill Hionas of Pan American Metals of Miami. "This is a situation that we would expect to see change in the relatively near future, particularly in light of concerns over future supplies of platinum."
Described by Louis XV as "the only metal fit for a king", platinum is valued for its rarity, beauty and functionality. For many years it has traded at a premium to gold and has been highly valued in jewelry production.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.