For those who are seeing precious metals as a hedge against inflation for the long term should start accumulating it.New automobile registrations in Europe have shown positive trend indicating increased auto catalyst demand for platinum and palladium, ETFS weekly report said.
LONDON: A massive sell-off occured in precious metals complex last week as FOMC minutes indicated that US Federal Reserve may reduce the $85 bn in monthly bond purchases in coming months if there is improvement in the economy.
Silver fell below $20 while Gold flirted with $1200 support. Platinum and palladium were also not immune to the sell-off. Both of them are trading below their marginal costs of production while gold and silver are near their all-in production costs, according to ETF Securities Ltd (ETFS).
For those who are seeing precious metals as a hedge against inflation for the long term should start accumulating it.New automobile registrations in Europe have shown positive trend indicating increased auto catalyst demand for platinum and palladium, ETFS weekly report said.
With Johnson Matthey forecasting the biggest platinum deficit in 14 years, ETFS is bullish on PGM, with China jewellery demand providing firm support.
courtesy of bullionstreet
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