Gold will continue to outperform silver, platinum, palladium
Tuesday, 7 October 2008
NEW YORK, Oct 3 (Bloomberg): Gold will continue to outperform silver, platinum and palladium on demand for a haven amid credit-market turmoil, analysts said.
The CHART OF THE DAY shows gold is up 0.8 per cent this year as of yesterday while silver dropped 25 per cent, platinum fell by more than a third, and palladium lost almost half its value. Platinum and palladium are used in pollution-control devices in cars. Silver has wider industrial applications than gold, and all the metals are used in jewelry.
``At this point, gold is a precious metal, and everything else is viewed as industrial metals,'' said Ralph Preston, an analyst at San Diego-based Heritage West Futures Inc. On Sept. 17, gold had its biggest gain in nine years, a sign ``central banks and large international players have been devouring the metal, since they're the only ones capable of producing such an extraordinary move,'' he said.
Gold may reach $900 an ounce on investor demand, said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. Silver may fall as low as $9.80 an ounce this month, while platinum has a ``distinct possibility'' to tumble to $750 an ounce, and palladium is in a ``pretty strong downtrend,'' he said.
``If the dollar does decline, gold is going to be a primary beneficiary, but performance of individual metals will depend on the demand side,'' Platt said. ``While the falling dollar has some inflationary implications, it also poses a drag on the domestic economy,'' which will curb industrial demand, he said.
Gold futures for December delivery fell $12, or 1.4 per cent, to $832.30 an ounce at 10:01 a.m. on the Comex division of New York Mercantile Exchange. Silver for December delivery rose 19.5 cents, or 1.7 per cent, to $11.315 an ounce. Platinum for January slid 1.9 per cent to $967.70 on the Nymex. Palladium for December fell 1.9 per cent to $199.25.
The CHART OF THE DAY shows gold is up 0.8 per cent this year as of yesterday while silver dropped 25 per cent, platinum fell by more than a third, and palladium lost almost half its value. Platinum and palladium are used in pollution-control devices in cars. Silver has wider industrial applications than gold, and all the metals are used in jewelry.
``At this point, gold is a precious metal, and everything else is viewed as industrial metals,'' said Ralph Preston, an analyst at San Diego-based Heritage West Futures Inc. On Sept. 17, gold had its biggest gain in nine years, a sign ``central banks and large international players have been devouring the metal, since they're the only ones capable of producing such an extraordinary move,'' he said.
Gold may reach $900 an ounce on investor demand, said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. Silver may fall as low as $9.80 an ounce this month, while platinum has a ``distinct possibility'' to tumble to $750 an ounce, and palladium is in a ``pretty strong downtrend,'' he said.
``If the dollar does decline, gold is going to be a primary beneficiary, but performance of individual metals will depend on the demand side,'' Platt said. ``While the falling dollar has some inflationary implications, it also poses a drag on the domestic economy,'' which will curb industrial demand, he said.
Gold futures for December delivery fell $12, or 1.4 per cent, to $832.30 an ounce at 10:01 a.m. on the Comex division of New York Mercantile Exchange. Silver for December delivery rose 19.5 cents, or 1.7 per cent, to $11.315 an ounce. Platinum for January slid 1.9 per cent to $967.70 on the Nymex. Palladium for December fell 1.9 per cent to $199.25.